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Innovate Finance Response to the Prime Minister’s Mansion House Speech

Last Friday, the Prime Minister Theresa May set out a vision for the UK’s future relationship with the EU, calling for an ambitious economic partnership, whilst at the same time seeking to provide a more detailed account of the UK’s position ahead of continued negotiations with the European Union.

The Prime Minister highlighted that a bespoke trade deal for the UK – as opposed to an off the shelf model – would recognise the deep level of integration which already exists between the UK and the EU.  

However, as the Prime Minister suggested, there are several ‘hard facts’ for both sides to consider in continued talks. These broadly centre on: acknowledging that EU market access will be less than today; judgements from the ECJ may still be referenced in UK courts; and that the UK may continue to explore the terms on which to remain part of certain European agencies that are critical in enforcing shared rules.  

Indeed, as suggested in the Mansion House speech – the UK will need to ensure a robust future arrangement for data sharing & protection exists with the EU, which goes beyond an ‘adequacy arrangement’; in turn providing for the continued free flow of data post-Brexit. Moreover, on the broader discussion of financial services – it was suggested we move beyond precedent towards an ambitious new partnership in order to establish future market access – a particularly relevant point given the need for renewed thinking on what a post-passporting regime may look like.  

Innovate Finance will continue to work with policy makers to ensure they recognise that the UK’s global role as a hub for FinTech will only continue if additional regulatory blocks or barriers to accessing investment or talent are avoided. Innovation thrives here in the UK through its strong support from both the finance and technology sectors, and these, along with FinTech, must be acknowledged as key to the UK’s future in a global market.

Importantly, Innovate Finance also believes that the UK government can provide a further indication of its continuing support for FinTech, and the broader science and innovation agenda, by securing a transition deal which provides clarity for FinTech companies, removing the understandable uncertainty many of those businesses and the people that work for them currently face, both here in the UK and across the EU.