London may lose competitive edge under planned future regulatory regime
Tuesday March 08 2011 | 05:14 AM

London’s competitiveness as a financial centre is in danger of being ignored under plans for a new regulatory structure in the UK, the International Underwriting Association has warned.

The UK’s Financial Services Authority’s (FSA) remit has been to consider the City’s role as an international hub for financial services. But this obligation has been scrapped in government proposals to share industry regulation between the Bank of England and two new bodies: the Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA).

Nick Lowe, the IUA’s director of government affairs, said: “Overall the emphasis of proposals outlined by HM Treasury is on preventing financial crises and managing systemic risk. This is, of course, a vitally important objective, but it is disappointing that there appears to be no consideration given to maintaining London’s pre-eminent position in the international financial services sector.

“Competition in our industry is as fierce as ever and unless London remains an innovative and efficient place to do business there is always a danger of it losing out to other financial centres around the world.”