Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

How Britain could keep its 'crown' in finance and technology after Brexit

How Britain could keep its 'crown' in finance and technology after Brexit

The United Kingdom should introduce special visas and overhaul its stock market rules to allow entrepreneurs to keep control of their companies if it wants to remain competitive in financial technology after Brexit.
Those are among the recommendations contained in a new report published on Friday. It is one of several reviews commissioned by the UK government to strengthen the hugely important financial services sector that is facing a precarious future because of the country's exit from the European Union.

"Britain has a proud record of starting up and scaling up some of the best known fintech products, but we cannot rest on our laurels," said Ron Kalifa, the former CEO of payment processing company WorldPay, who led the review. "The next powerhouses will not be created by accident," he added.

The United Kingdom has more than 10% of the global fintech market and the sector is now worth more than £11 billion ($15.3 billion) a year to the UK economy, according to the report.

But Britain's departure from the European Union — completed on Dec. 31 — has made it much harder for UK-based companies to access the vast EU markets. That could make the country less attractive to fast-growing digital banks and payments companies. In addition, new tougher UK immigration rules have made it more costly and cumbersome to hire Europeans.

"This review will make an important contribution to our plan to retain the UK's fintech crown, create more skilled jobs, and deliver better financial services for people and businesses," British finance minister Rishi Sunak said in a statement.

The report proposes allowing companies to list less of their stock when they go public and recommends changing the rules to allow dual class shares, which enable founders to retain greater control of their companies following an IPO.

These structures are relatively common in the United States and allowed on stock exchanges in Hong Kong and Singapore, as well as on China's Nasdaq-style Star Market. They are also permitted on Euronext Amsterdam, which has become a growing threat to the London Stock Exchange following Brexit.

The report also recommends setting up a £1 billion ($1.4 billion) fund to help firms grow and a fast-track visa to make it easier to hire foreign workers.
The report highlights three major threats to Britain's dominance, including Brexit, the pandemic and competition from countries such as Singapore, Australia and Canada, which are investing heavily in capital, skills and direct support for fintech startups.

TS Anil, the CEO of digital bank Monzo, was one of several executives to welcome the recommendations. "We're supportive of this review's recommendations, which would help the next generation of financial technology companies get off the ground, while enabling established companies, like Monzo, to take it to the next level," he said in a statement.

Olly Betts, a director at accelerator Founders Factory, told CNN Business that the review creates the right regulatory and investment frameworks to make the United Kingdom the "center of fintech and the jumping off point for expansion into Europe and beyond."
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×