54/07
09 May 2007
City Minister Ed Balls announces International Centre for Financial Regulation
City Minister Ed Balls announced the next steps in the Government agenda to increase the global competitiveness of the UK's Financial Services industry at a City High-Level Group meeting, chaired by the Chancellor of the Exchequer Gordon Brown on Wednesday 9 May.
At the meeting, the Government and industry discussed detailed plans for an International Centre for Financial Regulation (ICFR). The Centre will carry out research and offer training on international regulation with a view to influencing global regulatory developments.
This proposal - set out in a prospectus to be published today - was drawn up by a joint Government and industry working group, chaired by Lord Currie, who will today present the findings to the High-Level Group.
The proposal has attracted significant financial support from industry and the City, in addition £2.5 million to be provided by the Government over the next 3 years. At the request of the Chancellor, Mervyn Davies, Chairman of Standard Chartered, has agreed to chair the interim executive committee, representing donor interests, that will now prepare the Centre for launch.
Ed Balls said:
"Developing a new world class centre of financial regulatory expertise will not only help to inform the UK's principles based regulatory approach, but influence developments in regulation across the world.
"The Centre will be the first of its kind in the world, and although based in London it will have global reach, providing research and training for financial services regulators around the world."
Separately, Lord Levene will present a review of the London Insurance Market at the High-Level Group meeting, including proposals for market-led initiatives to enhance London's position as the centre for wholesale general insurance.
The Review includes proposals on improving industry processes; widening of the skilled insurance personnel pool, including a proposal to establish a London Insurance University; making insurance a career of choice; and hosting a Global Risk Summit to stimulate market innovation.
Ed Balls informed the High-Level Group meeting that he would host an Insurance Summit at No. 11 in the Autumn when Lord Levene will provide an update on the implementation of London Insurance Market Review proposals. At the meeting the Minister will report back on HMT's analysis of the sector and the potential for further reforms, which would inform the PBR 2007 process.
Notes to editors
1. In Budget 2006 the Chancellor announced a commitment to work with the financial sector to establish High-Level Group, with senior representatives from across the financial sector, to develop and support a new strategy to promote London as the leading international financial centre.
2. The High-Level Group held its first meeting at 11 Downing Street on 18 October 2006. The Group was chaired by the Chancellor of the Exchequer, Gordon Brown, with Ed Balls, Economic Secretary to the Treasury and Minister for Trade, Ian McCartney, also attending (Press notice 77/06).
3. Following the first meeting of High-Level Group, the Economic Secretary asked Lord Currie to chair a working group to draw up plans for an international centre for financial regulation. The Government, industry and the City will provide start up funding for the ICFR, and it is intended that the ICFR will become self-funding after the initial set-up phase. Barclays; Citigroup; Dresdner Kleinwort; Goldman Sachs; HSBC; JP Morgan; Man Group; Merrill Lynch; Morgan Stanley; Prudential, Standard Chartered; UBS; Aviva; Aberdeen Asset Management and 3i and have all agreed to provide start funding of £100,000 per year for three years for the ICFR, and further discussions are underway with the other interested parties - UK and on an international basis. The City of London Corporation have also pledged their financial support.
4. At the first City High-Level Group meeting Lord Levene agreed to develop a plan to deliver further market reforms to increase the competitiveness of the wholesale general insurance market. The group also decided to examine the proposal for a centre of regulatory expertise that would provide teaching and research, which Lord Currie agreed to Chair.
5. Budget 2007 - package of measures to improve the tax rules on insurance to help business operate in a flexible and modern environment, and to reduce compliance burdens as far as possible. The measures on Lloyd's modernisation, life insurance and insurance premium tax are aimed at modernising the tax rules to reduce complexity and increase clarity.
6. Separately, as part of a parallel initiative, the Economic Secretary will tomorrow be hosting, alongside the Department for Education and Skills and the Financial Services Skills Council, the launch of the National Skills Academy for the Financial Services sector, aimed at employment opportunities in vocational roles within the sector. This is the pilot year of the Academy, and there are currently four operational centres in Tower Hamlets, Manchester, Leeds, and Norwich, delivering programmes to 16-19 year olds as well as professional courses. The programme is designed to help to plug the predicted future skills gap in customer service, administrative and back office roles.
7. Members of the City High-Level Group are:
Members | |
| Martin Abbott | Chief Executive, London Metal Exchange |
| Anthony Alt | Chairman, Investment Banking, NM Rothschild |
| Sir Win Bischoff | Chairman, Citigroup Europe |
| Alderman John Stuttard | The Rt Hon The Lord Mayor of London |
| Andrew Cahn | Chief Executive, UK Trade & Investment |
| Jonathan Chenevix-Trench | Chairman, Morgan Stanley International |
| Michael Cohrs | Head of Global Banking, Deutsche Bank |
| Sir Andrew Crockett | President, JP Morgan Chase International |
| Sandy Crombie | Chief Executive, Standard Life |
| Professor David Currie | |
| Peter Sands | Chief Executive, Standard Chartered |
| Simon Davies | Chief Executive,Threadneedle Investments |
| Michael Geoghegan, CBE | Group Chief Executive, HSBC |
| Chris Gibson-Smith | Chairman, London Stock Exchange |
| Martin Gilbert | Chief Executive, Aberdeen Asset Management |
| Sir Fred Goodwin | Group Chief Executive, Royal Bank of Scotland |
| Andrew Moss | Finance Director, Aviva |
| Huw Jenkins | Chairman and CEO, UBS Investment Bank |
| Roy Leighton | Chairman, Nymex Europe |
| The Rt Hon the Lord Levene of Portsoken, KBE | Chairman, Lloyd's |
| Ken Livingstone | Mayor of London |
| Harvey McGrath | Chairman, Man Group |
| Stuart Popham | Senior Partner, Clifford Chance |
| Sir Michael Rake | Chairman, KPMG International |
| James Sassoon | The Chancellor's Representative for Promotion of the City |
| Teresa Sayers | Chief Executive Financial Services Skills Council |
| Richard Gnodde | Co-Chief Executive, Goldman Sachs International |
| Michael Snyder | Chairman, Policy and Resources Committee, City of London Corporation |
| Mark Tucker | Group Chief Executive, Prudential |
| John Varley | Group Chief Executive, Barclays |
| André Villeneuve | Chairman, Euronext.liffe |
| Bob Wigley | Chairman, Europe, Middle East & Africa, Merrill Lynch |
| Alan Yarrow | Vice-Chairman, Dresdner Kleinwort |
| Philip Yea | Chief Executive, 3i |
Observers | |
| Sir John Gieve | Deputy Governor (Financial Stability), Bank of England |
| John Tiner | Chief Executive, Financial Services Authority |
8. Media enquiries should be addressed to the Treasury Press Office on 020 7270 5238.
9. Non-media enquiries should be addressed to the Treasury's Correspondence and Enquiry Unit on 020 7270 4558, or by e-mail to public.enquiries@hm-treasury.gov.uk
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