The British American Finance Alliance (BAFA), a coalition of leading financial and professional services organisations from the UK and U.S., is urging governments on both sides of the Atlantic to accelerate regulatory cooperation — a move they say could unlock widespread economic benefits, from job creation and consumer savings through to business growth and increased innovation.
In its new paper, ‘Finance for growth: A shared U.S.-UK prosperity agenda,’ published today, the BAFA makes clear the opportunity for the new UK-U.S. Transatlantic Taskforce for Markets of the Future to facilitate this enhanced cooperation and urges it to ensure systematic input from and close consultation with industry.
The Taskforce, backed by both the U.S. and UK Treasuries, was launched following President Trump’s September UK state visit and is focused on greater collaboration on capital markets connectivity, innovation and digital assets.
The paper, which includes the collective asks of U.S. and UK financial services sectors, sets out how smarter, more aligned regulation could supercharge economic ties between the world’s two leading financial centres — London and New York — and deliver tangible benefits for businesses and households across both countries.
Key recommendations include:
- Unleashing cross-border data flows to support digital trade and innovation
- Cooperation on digital asset regulation to reduce costs and boost investor confidence
- Modernising Securities and Exchange Commission rules to open up new opportunities for investment firms
- Promoting the alignment of professional qualifications and standards and boosting talent mobility to fill skills gaps and drive productivity
- A scorecard or reporting mechanism to track regulatory issues identified and addressed
- Systematic industry input into U.S.-UK dialogues that impact the sector
- For BAFA to work in lockstep with U.S. and UK authorities on discussions relating to digital trade in financial services
Kenneth E. Bentsen Jr., Co-Chair of the British American Finance Alliance and President and CEO of SIFMA, said:
“The U.S and UK lead the world in financial services, presenting a unique opportunity to strengthen shared growth and prosperity between our economies. BAFA’s paper highlights the importance of continued U.S.–UK collaboration in promoting regulatory coherence and enhancing balanced market access. By identifying ways to jointly capitalize on technological opportunities, deepen trade and investment ties, and promote efficient and proportionate regulation, we can enhance our capital markets and generate increased investment in manufacturing, services, and all sectors of our economy. The Transatlantic Taskforce for Markets of the Future provides an important platform to advance this work, ensuring open, competitive, and resilient capital markets on both sides of the Atlantic. BAFA stands ready to be a constructive partner for this important group.”
Chris Hayward, Co-Chair of the British American Finance Alliance, Deputy Chair of TheCityUK and Policy Chairman of the City of London Corporation, said:
“This is about more than finance — it’s about jobs, innovation, and prosperity for millions of people. From small businesses seeking investment to consumers looking for better financial products, regulatory alignment between the UK and US will make a real difference.
“The Transatlantic Taskforce adds welcome urgency. BAFA is ready to help turn ambition into action.”
Key facts about U.S.-UK financial services:
- Financial services contribute around 7% of GDP in both economies – a true engine for growth.
- S. financial services exports to the UK are worth almost $19bn per year – 80 percent higher than the U.S.’s second largest financial services market (Canada).
- 30 percent of all U.S. FDI in the UK is in the financial services industry. U.S. investment in UK financial services is larger than U.S. investment in any other country’s financial services industry.
- The UK and U.S. together are home to three of the top five financial centers in the world – New York, London and Chicago.
- S. financial institutions employ 170,000 people in the UK – over half of all the employees working for U.S. financial institutions in the whole of Europe.
- S. investors hold over $1 trillion of UK equities – more than they hold in any other European, Asian or North American economy.
The paper can be found here.
Background
*BAFA brings together 22 leading industry groups from both sides of the Atlantic, representing the full spectrum of financial and professional services. The secretariat is co-chaired by Chris Hayward, Deputy Chair of TheCityUK and Policy Chairman of the City of London Corporation and Ken Bentsen, CEO and President of the Securities and Financial Markets Association (SIFMA). It is the only transatlantic coalition representing this broad cross-cutting group of sectors.
TheCityUK is the industry-led body representing the UK’s financial and related professional services. We champion and support the success of the ecosystem, and thereby our members, promoting policies in the UK and internationally that drive competitiveness, support job creation and enable long-term economic growth. https://www.thecityuk.com
The City of London Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally-successful UK. www.cityoflondon.gov.uk.
SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly 1 million employees, we advocate for legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.
