Chancellor Rachel Reeves has introduced the “Leeds reforms” that have been billed as the most significant changes in over a decade to the 海角视频’s financial system.
The reforms, which were unveiled in the West Yorkshire city where Ms Reeves is an MP, aim to stimulate economic growth and boost retail investing. Key measures include revising the ring-fencing regime for banks and easing regulation in the City to promote “informed risk-taking” within the financial system.
The reforms are designed to encourage increased investment among financial institutions and individuals alike.
A review, led by Economic Secretary Emma Reynolds, will focus on striking a balance between growth and stability, including safeguarding consumer deposits. The Treasury is also supporting regulatory reforms for mid-sized banks to release funds for lending and investment, as well as reducing bureaucratic hurdles for City businesses.
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Key measures include a new advertising campaign will highlight the benefits of investing to individual consumers. Banks will be able to offer “targeted support” from April next year where they can alert customers about specific investment opportunities, in hopes it will encourage groups of people with cash sitting in low-return current accounts to move it into stocks and shares.
Risk warnings on investment products will come under a review to ensure people can make accurate judgements about risk levels – potentially opening the door to some warnings being watered down. And long term asset funds will be allowed to be held in stocks and shares Isas next year.
Ms Reeves said: "“We are fundamentally reforming the regulatory system, freeing up firms to take risks and to drive growth. “Second, we’re providing certainty for banks operating in the 海角视频, and ensuring that 海角视频 banks have the ability to compete internationally and drive economic growth.
“Third, we’re doubling down on making the 海角视频 an innovation capital and the place of choice for fintechs to start up, to scale up and to list in the 海角视频. Fourth, we’re seizing opportunities in areas where we are already world leading, including asset management, sustainable finance and specialty insurance.
“And fifth, we are delivering prosperity by increasing the firepower of our capital markets and boosting retail investment.”