Karim Haji, EMA and UK Head of Financial Services at KPMG, said: “In a bid to make the UK capital markets more attractive, the Chancellor has proposed changes across the Defined Contribution and Defined Benefit pensions system that are wide-ranging and thorough. Critical to the success of the reforms will be greater focus on long-term value, sustained regulatory support and cross-party consensus. There are no quick fixes for how pension funds are invested, but the proposals would mark a substantial shift in emphasis if they are legislated over the next decade.”
Karim notes that the industry will also welcome the Chancellor’s proposed reforms to listing and capital markets, adding: “UK capital markets would benefit from greater flexibility in prospectuses, and the creation of the intermittent trading venue to allow for greater access to pre-listing capital could help support private companies to grow and transition to public markets.”
On the investment research review, Karim adds: “There’s a need for better quality and availability of investment research. It will be interesting to see the results of the required FCA consultation on recommendations to allow more optionality on paying for research. Having implemented the unbundling requirements, any amendment to regulations will require more operational changes for firms.”
In the wider context of the Financial services and Markets Bill, today sees the launch of the consultation on the Digital Securities Sandbox*. Karim comments: “HM Treasury is looking to the future and has recognised the efficiencies that could be brought to financial services by tokenisation of securities. The launch of the consultation on the Digital Securities Sandbox will be the first UK financial market infrastructure sandbox. It’s a sensible approach to keep the UK at the forefront of technological change and retain the UK’s ranking as one of the most fintech-friendly countries globally.”
