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The Bank of England has announced that it is considering creating a “concierge service” to help foreign companies looking to set up business in the UK, responding to the government’s call for measures to boost growth.
Sam Woods, head of the BoE’s Prudential Regulation Authority, said in a letter to the prime minister published on Monday that the central bank was considering a similar service that Singapore already offers.
The government has asked the PRA and 16 other UK regulators to submit ideas for rule changes that could increase risk-taking and investment in the economy. Sir Keir Starmer has vowed to “dismantle” the bureaucracy to deliver on his promise to boost growth.
Mr Woods said the PRA “recognizes and strongly supports” the government’s focus on promoting growth and “responsible risk-taking”. But he made clear that its main objective remains to maintain financial stability, without which growth will suffer.
“Our main goal is primarily stability, which is the basis for a predictable economic environment in which households and businesses can confidently plan ahead and make investment and hiring decisions,” he said. ” he said.
The PRA lists a number of measures it has already outlined to reduce regulatory burdens, including delaying the introduction of the global Basel III agreement on bank capital in the UK, simplifying capital rules for insurers, and He cited the removal of the upper limit on bonuses.
The letter to the Prime Minister, which was also sent to Prime Minister Rachel Reeves and Business Secretary Jonathan Reynolds, included relatively few new proposals beyond concierge services or promises to remove duplicative regulations.
A similar letter from the head of the Financial Conduct Authority to the Prime Minister, published last week, included a number of new proposals, including considering rolling back rules around mortgage lending and anti-money laundering checks.
In November last year, in his first Mansion House speech, Reeves said the rules introduced after the 2008 financial crisis had gone too far, saying, “We regulate for risk, but not for growth. “No,” he criticized financial regulators.
Mr Woods said: “I look forward to working with colleagues at the Treasury and the Department of Industry and Trade to see if there are any wider changes that could be made to simplify and streamline the UK’s regulatory regime, or to help support our growth in other ways.” said.
He said the PRA would allow retrospective authorization so that insurers do not need prior approval for investments. He added that insurance companies’ reporting requirements had already been cut by a third, and the regulator would also outline plans to reduce banks’ reporting requirements this year.
Mr Woods said the PRA could work with the FCA, Investor Relations and other stakeholders to present a proposal for a concierge service later this year.
