The UK has long been regarded as one of the most regulated countries in the world when it comes to the financial services sector. Arguably much of this has been driven by membership of the EU, and the numerous money laundering directives we’ve adhered to over recent years. However, the UK will still be one of, if not the most strictly regulated countries even after Brexit – as the City of London needs to continue to be seen as beyond reproach as a financial institution.
2021 brings a new administration to the White House and, with it, a more favorable outlook toward sustainability, especially climate change. How much this shift in policy will influence financial regulations and ultimately banks, especially in the US, is not yet certain. But banks should prepare for stronger pressure on the financial industry to contribute to the effort to foster sustainable development through stricter disclosure requirements and redirected investment goals.
The term fake news is true and becoming truer as technology creates more channels to deceive recipients, including deepfake. A form of artificial intelligence, deepfake can fool even the most discerning viewer, and fraudsters are seizing on it as another opportunity for illicit gain. What can financial businesses do to protect themselves against this new line of attack, and what can we all do to prevent ourselves from being hoodwinked?
With just a week left before the December 31, 2020, transition-period deadline, the United Kingdom and the European Union (EU) finally agreed to new post-Brexit trading arrangements and, in doing so, avoided a potentially disastrous no-deal scenario. But conspicuously absent from the trade deal are rules governing the financial-services sector.
The UK will complete the Brexit journey that it began four years ago on December 31, the final day of the transition period. Its future trade relationship with the EU is not definite, and the British are wisely preparing for a hard landing. This time of transition should be regarded as an opportunity to build a united country, one that is in a mutually beneficial trade partnership with the world.
In the United Kingdom, COVID-19’s impact on businesses has been tempered by a number of timely government loan schemes. That’s the good news. The bad news is that they will run their course, and the reeling in of the financial lifeline is guaranteed to cause a liquidity shortfall. What steps must be taken now to mitigate the inevitable blow to the economy that could snowball into yet another financial crisis?
The European Bank for Reconstruction and Development has a long history of investing in emerging markets, and its contributions are most constructive during crises. With the global economy reeling from COVID-19, the EBRD ramped up its efforts to be a partner to key players in the markets in which it invests, providing emergency financing and policy direction with a focus on fostering a green economy characterized by inclusion and digitalization.
According to figures released on Friday, September 11, by the Office for National Statistics (ONS), the United Kingdom’s gross domestic product (GDP) expanded by 6.6 percent during July, as lockdown measures in the country continued to ease and the economy showed clearer signs of recovery.
Banks have traditionally been considered the “owners” of whatever data they manage to collect on their customers. But that entrenched viewpoint was challenged by Open Banking, an initiative of the UK’s Competition and Markets Authority. Under this model, the consumer owns his or her data. Now the concept is spreading not only to other parts of the world but to non-payment financial products and services via Open Finance.
Taking on the mantle of governorship of a central bank is challenging, but for Andrew Bailey, the new governor of the Bank of England, the role couldn’t be more formidable. With the United Kingdom’s long-awaited divorce from the European Union around the corner, the country’s financial system will need all the help it can get to survive the inevitable turbulence. Bailey’s new job won’t be a walk in the park!