The prime minister has put financial services at the heart of his reform package to drive growth, arguing that regulatory changes aimed at eliminating post-crisis risks have gone “too far”.
Speaking at Set Piece's Mansion House, Rachel Reeves said the current system around the Square Mile seeks to eliminate risk-taking and stifle economic growth. 
He plans to rebalance the financial services sector in the hope of seizing investment opportunities across UK businesses, infrastructure and clean energy.
Mr Reeves said: “Successive governments were right to make regulatory changes after the global financial crisis, but it is important that we learn the lessons of the past to ensure that regulations keep pace with the global economy at the time.” Ta.
“These changes have created a system that seeks to eliminate risk-taking. It has gone too far and in some cases has had unintended consequences, and we must now address it. .”
The Chancellor said he had written to the Financial Conduct Authority, the Prudential Regulation Authority, the Monetary Policy Committee and the Payment Systems Regulator “to focus more on supporting economic growth”.
He added that the Financial Ombudsman Service's framework would also be revamped “to give consumers and financial services firms clearer expectations about decisions, while continuing to play an important role in helping consumers access redress.”
Mr Reeves went on to say that fraud cost UK consumers around £8.3 billion last year, with “money being stolen from investments and loans made by the financial services sector”.
The Prime Minister said she, Home Secretary Yvette Cooper and Secretary of State for Science, Innovation and Technology Peter Kyle have written to the tech and telecommunications industries to “do more to reduce the scale of fraud taking place in the country. I urge you to act quickly.” “Platforms and Networks.''
The government expects these companies to report on their progress in March next year, ahead of expanding their fraud strategy.
Mr Reeves said he would unveil the first-ever Financial Services Growth and Competitiveness Strategy in the spring “to provide long-term certainty and solidify the sector's place at the heart of the Government's 10-year Modern Industrial Strategy”. said.
It will focus on five priority growth areas: fintech, sustainable finance, asset management and wholesale services, insurance and reinsurance, and capital markets.
In a meaty part of his speech, the Prime Minister highlighted two consultations being published ahead of the Spring Pensions Bill to bring England and Wales' defined contribution and local government pension schemes into megafunds and mirror the pension system. He added that he plans to do so. Australian and Canadian funds.
The government plans to combine 86 council pension funds, which involve a total investment of £354bn and are run by local government workers, into a giant fund run by fund managers.
The private sector said the move could mobilize trillions of pounds of capital to support UK business and infrastructure.
The Prime Minister said the financial services industry was well placed to achieve the growth he wanted as it was the “crown jewel” of the UK economy, employing 1.2 million people and accounting for 9% of gross domestic product. added.
Tom Selby, director of public policy at AJ Bell, said:
“From the creation of a giant pension fund to a shake-up of the regulator's approach to reforms aimed at improving the support available to investors, the Chancellor clearly wants to show he is serious about boosting the economy. I'm thinking.
“It is no exaggeration to say that UK regulation has historically focused on the risks of investing for retail clients, with the result that potential long-term benefits have been drowned out by risk warnings.
“A move towards a more balanced disclosure approach and sensible reforms to the boundaries of advice guidance are both vital to creating an investment culture in the UK.”
UK Treasury Chief Executive David Postings added: “Coupled with the fact that she is working on how to best balance risk and consumer protection to support economic growth, she[the Prime Minister]We strongly welcome Japan's support in this area.”
“The regulatory environment is key to this, and the new mandate rightly highlights the importance of growth and competitiveness in the regulator's work.”
Robin Feath, chief executive of the Building Societies Association, said the Prime Minister's speech builds on Labour's manifesto pledge to double the size of the mutual economy.
Mr Feath said: “A strong mutual sector provides choice for consumers and creates resilience in the financial sector.
“With a mutual company, you can be confident that profits will be reinvested in the business and for the benefit of our members and community, rather than being distributed to outside shareholders.”
Other measures
Enact legislation to establish Pisces by May 2025 next year — the “world's first” regulated market for private company stock trading, with stamp duty exemptions on share transfers, applicable to staff below senior management. Negotiate to replace the current certification system Launch a pilot to provide digital gilt instruments using distributed ledger technology
