Balls Unveils Plans For International Centre For Financial Regulation

by Robin Pilgrim, LawAndTax-News.com, London

14 May 2007

Economic Secretary to the UK Treasury, Ed Balls last week announced the next steps in the government's agenda to increase the global competitiveness of the UK's Financial Services industry at a City High-Level Group meeting, chaired by Chancellor of the Exchequer Gordon Brown.

At the meeting, the Government and industry representatives 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 - published last week - was drawn up by a joint Government and industry working group, chaired by Lord Currie, who presented the findings to the High-Level Group.

The proposal has attracted significant financial support from industry and the City, in addition to the GBP2.5 million to be provided by the Government over the next 3 years.

Mr Balls explained that:

"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."

At the request of Chancellor Brown, 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.

Additionally at last week's meeting, a package of measures designed to increase the global competitiveness of the UK's fund management industry by reducing costs for fund managers by up to GBP290 million a year was presented.

The measures will protect investor assets whilst making UK funds more attractive internationally and promoting choice by allowing both retail and wholesale investors to access new overseas funds in the UK more quickly.

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