MPs to explore fintech opportunities in review of financial services post-Brexit

POLITICIANS are set to investigate how the UK can better utilise fintech opportunities as part of a review into priorities for the financial services sector post-Brexit.

The Treasury committee of MPs has launched an inquiry into the future of financial services once the UK has left the EU.

It will assess what the government’s priorities should be in the financial sector and whether it should maintain current regulations that align it closely with the EU or adopt new ones.

Read more: Property market and SMEs at risk amid new Brexit chaos

Read more: Consumers to ramp up investment in 2019 despite Brexit woes

“London is the world’s premier financial centre, and many of us want to keep it that way,” Nicky Morgan, chair of the Treasury committee, said.

“Brexit will have a significant and long-lasting impact on the financial services sector, including the insurance, retail banking and asset management sectors, in the UK, the EU, and potentially the rest of the world.

“The UK may converge, seek equivalence, or diverge from the EU. As part of our new inquiry, the Treasury committee will examine the risks and rewards of each of these choices.

“We’ll also explore the opportunities outside Brexit, such as fintech, on which we should be capitalising.”

It will make a series of recommendations to the government and regulators about what it should prioritise in negotiations with the EU and the rest of the world after taking evidence from industry, regulators, ministers and officials,

“We’ll also seek to conclude whether it would be in the long-term interests of the UK to align closely with EU financial rules, or to forgo financial services trade with the EU and pursue trade with other third countries,” Morgan added.

Read more: Treasury pushes back on plans for tighter rules on business lending