“Economic co-operation can help to make a fairer and more just world.”

Rishi Sunak

This was the closing sentence of Rishi Sunak’s Mansion House speech marking the launch of his Vision Statement last Thursday, 'A New Chapter for Financial Services’. It marks a turning point for Britain, as we start on a new decisive phase of integration, as yet unseen in global financial services.

The document is well worth reading, and there are several specific areas which could be a real change for the better, including the establishment of the US-UK Financial Regulatory Working Group, and the consultation on our Prospectus regime, also launched on 1st July.

At first sight, the initiative may seem very high-level and institutionally-geared, but it has the capacity to form the bedrock for the more egalitarian approach to capitalism for which we have argued for so long. So in this commentary we look at the principles and the process which will turn this vision into a reality.

As a member of the European Union, we had no opportunity to pursue international convergence in financial services: everything had to be routed through Brussels. So, just as with trade agreements where our negotiation capability has had to be developed swiftly by Liz Truss and her officials, so also we can explore a new convergent approach in the regulation of, and infrastructure for, financial services.

Naturally, we wish to maintain maximum access to EU markets, and there is significant reference to equivalence in the Vision Statement. Rishi Sunak also made clear in his speech that we will maintain the high standards of integrity and professional conduct for which London is renowned in all future activities.

He set out five guiding principles:

  • Transparency;
  • A rules-based international order;
  • A sovereign approach;
  • Multi-lateral engagement; and
  • The pursuit of real change - not just engagement.

This is a constructive basis on which to build for the future, and it includes the wish to keep pace with cutting-edge technology, and to stay focused on sustainability: he made particular reference to NS&I’s Green Savings Bond, which is also discussed in this week’s This is Money programme.

Moving to the rules-based international order will mark a huge advance for the free markets and for investors generally. At present, there are all sorts of barriers to investing internationally, including different custodial and clearing systems and the infamous W8-BEN form which non-US nationals have to complete in order to invest in American stocks.

Meanwhile, international companies with employees in many countries have quite a task to implement a common employee share ownership programme. Specialist businesses such as Global Shares do what they can to circumnavigate the problems, but it's not easy.

Likewise, a widespread customer share ownership programme - such as we have proposed for giant tech companies - would have to overcome similar challenges in implementation.

However, the drive for international co-operation is also essential for the developing world, where the opportunity to build local entrepreneurial skills is essential. Micro-finance has made a major contribution to empower and develop local people - I attended a Five Talents seminar last week from Uganda, which was truly inspiring. But if cross-border barriers are not reduced, there'll be strong pressure for the most successful local entrepreneurs to move to developed nations.

So – ‘Hats Off’ to Rishi Sunak for setting out his vision so clearly. Last week we received some criticism for being impressed by the effectiveness and diversity of Boris Johnson’s ministerial team, but we should remember that British news broadcasting tends to be consumed with finding fault, not celebrating success, and that it has an excessively local bias. It's therefore not surprising that when a senior minister ‘blots his copybook’ - as was the case with Matt Hancock - it's headline news.

We should remember that steering this country back onto the global stage, and doing so with the breadth of talent which is available in our multi-ethnic community, is well underway - and we should therefore give credit where credit is due.

Gavin Oldham OBE

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