Simon Jowers - Londongovuk.rtf by longze569

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									     City competitiveness and the High-Level
                     Group
                                        Simon Jowers
                                  Head of Global Markets
                              Financial Services Strategy Team
Importance of financial services
•    UK has a comparative advantage
•    8.6% of GDP in 2005, up from 6.6% in 1995
•    1.1 million jobs
•    UK financial trade surplus £26.4bn in 2006, largest in the world
London’s strengths
1.     Scale
          UK banking sector deposits $4.6tr (end-2004)
          UK insurance market net worldwide premium income £166.7bn (2005)
          LSE main market capitalisation: £1,932bn (end-2006)
          UK international debt securities issued in 2006: $2,733bn
          Assets under investment management: £3.5tr (2005)
London’s strengths
2.     Scope
          “Michael Klein… at Citigroup, describes Britain’s capital as New York, Chicago,
           Houston and Washington, DC, rolled into one, because it trades all the assets of the
           first three and is regulated on the spot as well. Instead of Greenwich, Connecticut, it
           has Mayfair for hedge funds. London, moreover, is a hub for Europe…” The
           Economist, 19 May 2007


London’s strengths
3.     Internationalism
•    Strong tradition of foreign ownership and participation
•    Gateway to the EU single market
•    Historical links to Asia
•    Strong transatlantic links
•    70% of secondary market in international bonds (including Eurobonds)
•    43% of global OTC derivatives
•    32% of global foreign exchange
•    21% of global hedge fund assets
•    Largest number of foreign banks (255)
London’s advantages
•    Regulation
•   Business environment
•   Skills and immigration
•   Time zone
•   Language
•   English law
City competitiveness agenda - origins
•   Meeting between Chancellor and City stakeholders – March 2006
•   Announcement at Budget 2006
•   Two components
         Better overseas promotion
         Competitive business environment
Budget 2006 statement
High-level Group first meeting
•   18 October 2006
•   SWOT prepared through 6 practitioner groups held summer 2006
         Banking
         Insurance
         Securities markets
         Asset management
         Legal services
         Accountancy services


High-level Group agenda
•   Maintaining cutting-edge principles-based regulation
•   Modernising the wholsale insurance market
•   Boosting professional financial skills in London
•   Better overseas promotion
High-level Group agenda
•   Competitiveness of asset management sector
•   Move to new points-based migration system
•   Infrastructure
•   Tax

Outputs
•   Varney review
•   Investment Exchanges & Clearing Houses Bill
•   New commercial court
•   Budget 2007 measures including cut in corporation tax
•   FSA strategy on more principles-based regulation
•   Engagement with the City on EU issues, Islamic Finance and immigration
•   Deregulation of freight-forwarding insurance
High-level Group 2nd meeting
•   9 May 2007
•   Measures to improve competitiveness of fund management industry
•   Report on skills gaps
•   Prospectus for new International Centre for Financial Regulation
•   “Insurance summit” planned for autumn
•   Delivery of overseas promotional strategy with new website
    www.thecityuk.com and promotional material


Next steps
•   Delivery on measures announced on      9 May
•   Insurance summit in autumn
•   Carbon markets
•   Engagement with Asian and Middle East markets
•   Engagement with MPs and consumers
Contact details

								
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