Huw Jones

LONDON (Reuters] – Britain must move faster and further in reforming its financial laws to’reboot’ following Brexit. The report was issued by two think tanks.

Britain’s public consultations have already been launched, with a focus on Thursday on the reform of insurance rules. The aim is to make London an internationally competitive financial hub, despite being cut off by the European Union as a result of Brexit.

The debate is now about alignment with the EU for future access. Instead, the UK should focus on closer alignment and cooperation with the U.S. and with other markets around the world,” the joint report https://newfinancial.org/report-the-future-of-uk-banking-and-finance from New Financial in London and the Atlantic Council in Washington said.

The report stated that Britain should concentrate on the “low-hanging fruits” of the EU’s inherited rules, such as speedier tweaking, while being cautious about going beyond international standards.

Although banks have welcomed the drafts of reforms to date, they want more speed due to many legislative requirements. This takes time.

Reports indicate that Britain’s capital market could expand by as much as 40%, if it closes the gap with America. This adds up to approximately $75 billion per year.

John Glen, Britain’s minister of financial services, stated at a launch for the report’s release that he shares its desire for close ties with America. He introduced “sweeping reforms” in London to increase London’s competiveness.

Glen stated that there is an opportunity to collaborate to create the global financial services regulatory framework.

Britain’s “default setting”, he stated, will be an openness to new ideas and talent by offering visas for a wide range of countries and fair taxes.

The report stated that there is an existing UK-U.S. foundation with more money traded in London than New York. The combined market share of hedge funds, commodities derivatives and interest-rate swaps is more than 80% between the United States and Britain.