PwC comments on Mansion House speech and Government’s Financial Services Growth and Competitiveness Strategy

Darren Ketteringham, Head of Financial Services, PwC UK, said:

“UK-wide growth simply cannot happen without the financial services industry, so today’s announcements provide much-needed clarity on the Government’s ambition to position financial services as a central and enabling economic driver. The priorities are right and it is a promising step forward with a lengthy to-do list; what matters right now is swift and sustained action.

“The digital strategy for wholesale financial markets is a clear statement of intent. By removing outdated practices such as paper-based processes and supporting technologies like distributed ledger and AI, the government is laying the groundwork for a more efficient and competitive market. Urgent progress is needed on this agenda for the UK to keep pace with other financial centres such as the United States, Singapore and UAE. The emphasis on regulatory flexibility, supporting firms to scale up, industry coordination and global alignment, including the Digital Securities Sandbox and the new Digital Markets Champion, reflects a strong ambition to lead. 

“A renewed focus on ensuring the regulatory framework is proportionate and supportive of growth is particularly welcome. The proposed reforms to the Financial Ombudsman Service mark a positive step toward improving confidence and reducing barriers to national and international investment and enabling more innovation.

“The announced review of the ringfencing regime is a clear statement of intent, reinforcing the Government’s desire to move the regulatory debate into a new phase and rebalance the level of risk in the system. 

“Now is the time for industry, regulators and government to work together to press ahead and identify areas for growth and competitive advantage while managing risk, stability and protecting trust in the sector - all in the best interest of UK plc.”