TheCityUK has joined a host of partner groups in announcing the creation of a new industry-led coalition, the UK-US Financial and Related Professional Services Industry Coalition.
The coalition will work to present industry views in the context of the new US-UK financial regulatory working group and, as they evolve, the trade and investment discussions between the UK and US.
The groups wrote in the announcement today:
The UK and US’ financial and related professional services relationship is a key driver of economic prosperity in both jurisdictions. This bilateral investment relationship is the largest in the world and the UK is the U.S. largest trading partner with respect to these services. Financial services, in particular, play a prominent role in trade between the UK and the US reaching $32bn in 2017, accounting for over a quarter of the overall trade in services between the two economies. Enhancing this relationship – alongside the forging of strong, trilateral U.S./UK/EU ties – presents a strategic economic opportunity.
The coalition will focus on three broad themes that should be explored and developed in any future UK-US discussions:
Fostering deeper regulatory cooperation – there is scope for more rigorous coordination and cooperation without undermining existing domestic rules and standards – differences can be respected but also managed in the interests of cross-border investment.
Maximising cross-border market access in trade and investment – the US and the UK enjoy very open and diverse markets in financial services. A UK-US regulatory dialogue, which could be codified within a future trade and investment agreement, could build on this, by enhancing volumes of cross-border financial and related professional services transactions and foreign direct investment between the US and UK.
Recognising the importance of the evolving technological landscape to financial services – policymakers are paying increasing scrutiny to market conduct, data transfer, cyber security, artificial intelligence and financial technology (FinTech). These issues will require close regulatory coordination to address emerging risks without stifling technological and financial innovation and should be addressed in any future UK-US agreements.
The full announcement, including the complete list the 17 participating organisations, can be found here.