SIFMA today joined a host of partner groups in announcing the creation of a new industry-led coalition, the UK-U.S. Financial and Related Professional Services Industry Coalition. The coalition will work to present industry views in the context of the new U.S.-UK financial regulatory working group and, as they evolve, the trade and investment discussions between the UK and U.S.
“The United States and United Kingdom’s 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 $32 billion in 2017, accounting for over a quarter of the overall trade in services between the two economies,” the groups wrote in the announcement today. “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-U.S. 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.
- Maximizing cross-border market access in trade and investment – the U.S. and the UK enjoy very open and diverse markets in financial services. A UK-U.S. 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 U.S. and UK.
- Recognizing 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-U.S. agreements.
The full announcement, including complete list the 16 participating organizations, can be found here: https://www.sifma.org/wp-content/uploads/2018/09/UK-U.S.-Financial-and-Related-Professional-Services-Industry-Coalition-Release.pdf
