Skip to main content

Britain uses Brexit to change finance.

BIG BANG 2.0?

Not quite, but it reflects a flip in the regulatory pendulum from years of boosting bank capital requirements and enforcing consumer safeguards to tweaking laws for Britain after Brexit.

Britain uses Brexit to change finance.

Initially branded Big Bang 2.0 on the same scale as 1980s share trading reforms, the revisions are now called the "Edinburgh Reforms" after the city where finance minister Jeremy Hunt presented them.

The administration has toned down its language, stating there would be no 'race to the bottom,' huge departure from international norms, or removing investor protections. Instead, authorities should help the financial sector's international competitiveness.

Hunt said it's inappropriate to label the measures a Big Bang given the need to avoid 'unlearning' lessons from the 2008 global financial crisis and emphasized regulator independence.

"The city opposes deregulation. Alasdair Haynes, CEO of Aquis stock market, said today's announcements signal evolution, not revolution.

WHY RING-FENCE?

Britain eased capital rules for insurers and is now targeting banks.

Since January 2019, banks must protect their deposit-taking arms with capital against risky activity.

Smaller banks say the laws make it difficult to compete with larger lenders in the mortgage sector. The government will alter rules based on a review it commissioned.

Mid-2023, the government will consult on exempting banks without large investment banking activity and raising the ringfencing deposit threshold from 25 billion to 35 billion pounds.

ARE BANKERS CLEARED?

It's not pre-crisis "light-touch."

The administration declared it will lift an EU cap on banker bonuses, however other bonuses restrictions will remain.

.net/YwotbKdP4sVunJGfdhmgww/e8f260a6-84bf-4222-a093-e1ef14e44c00/

Britain enacted laws in 2016 to hold senior bankers and insurers directly accountable for their actions after few were penalized for misconduct that led to the global financial crisis.

It was feared as a way to shame bankers by putting "heads on sticks," but there have been few investigations or enforcement cases. Bankers complain regulators delay key hires.

The government will examine the senior management and certification regime in the first quarter of 2023.

Markets?

As London tries to catch up to New York in listings, there will be many reviews.

Rules on short-selling, or stock bets, are being reviewed. The administration wants to replace the EU-era "PRIIPs" investment guide with a new framework.

An industry taskforce will explore the case for lowering the time it takes to settle a stock trade from two working days to one.

Companies' listing prospectuses and securitization rules will be reformed.

The government commits to creating a "consolidated tape" by 2024 so investors can compare prices across trading platforms.

The government will act on recommendations to improve how listed firms raise capital.

EU rules requiring brokers to itemize fees for stock selection research and order execution will be reviewed. The EU has already partially repealed this requirement. Trials of an intermittent wholesale market venue will increase companies' access to financing before becoming public.

Comments

Popular posts from this blog

North Korean hackers are using almost 500 phishing domains to steal NFTs.

The hackers made fake websites that looked like NFT projects, NFT marketplaces, and even a DeFi platform. Hackers with ties to North Korea's Lazarus Group are said to be behind a massive phishing campaign that targets investors in nonfungible tokens (NFTs). The campaign uses nearly 500 phishing domains to trick people into giving away their personal information. SlowMist, a blockchain security company, released a report on December 24 that showed the methods that North Korean Advanced Persistent Threat (APT) groups have used to trick NFT investors out of their NFTs. These methods include putting up fake websites that look like different platforms and projects related to NFTs. Some of these fake websites include one that pretends to be a World Cup project and others that try to look like popular NFT marketplaces like OpenSea, X2Y2, and Rarible. SlowMist said that one of the methods was for these fake websites to offer "malicious mints," which trick the victims into thinkin...

Dar predicts economic growth

Finance Minister Ishaq Dar declared Saturday that Pakistan will not default despite opposition propaganda. "Pakistan won't default on opposition propaganda" (Pakistan Tehreek-i-Insaf). Mr. Dar told businessmen that the government isn't headed for default. Imran Khan and other PTI officials anticipate Pakistan will default due to PML-"bad N's policies." Mr. Khan believes the economy can only be stabilized with new elections and a stable government. Mr. Dar said the opposition hurts the country's economy. The opposition also spreads corruption rumors to deter foreign investment. The PTI should not meddle with the economy, he said. The minister lamented his treatment during the past PML administration. "I was a terrorist." My transgression was improving the country's economy. Mr. Dar spent five years in self-exile in the UK. He criticized the PTI and PML-N for devaluing the currency. Rupee devaluation During Shahid Khaqan Abbasi's tenu...

The partnership between QuizTalk and Meta-Airline is an NFT strategic alliance.

The alliance's primary objective is to expand the breadth of NFT markets both domestically and internationally by ensuring that both organizations' platforms feature NFT content. SK Telecom's Ifland metaverse service recently sponsored a quiz show by QuizTalk Co., Ltd., which has expanded its presence in the NS home shopping and live commerce industry. QTCON has now been made available on the three largest domestic exchanges, Bithumb, Upbit, and Coinone. It also debuted on the international cryptocurrency exchange Gate.io. About 780 million answers, 1.32 million quizzes, and 700,000 downloads can be found on QuizTalk's "QUIZTOK" platform. You can earn points for answering a quiz question on Quiz Talk, and the person who posed the question can earn points as well. To make it easier for one's followers to access quizzes, a quiz curator has been implemented. If a company wants to promote itself on QuizTalk, it must first acquire and use tokens. Your MAL-SCAN ...