The Bank of England proposed a ‘concierge’ service to welcome foreign companies
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The Bank of England has revealed that it is considering setting up a “concierge service” to help foreign companies looking to set up UK operations, in response to the government’s growth promotion measures.
Sam Woods, head of the BoE’s prudential supervision authority, said in a letter to the prime minister published on Monday that the central bank had already studied a similar service in Singapore.
The government has asked the PRA and 16 other UK regulators to submit proposals for changes that could increase risk exposure and investment in the economy. Sir Keir Starmer has vowed to “tear apart” bureaucracy as he looks to deliver on his promise to boost growth.
Woods said the PRA “recognizes and strongly supports” the government’s focus on promoting growth and “responsible risk-taking”. But he made it clear that the main objective is still to maintain financial stability, without which the development will suffer.
“Our primary goals are primarily about stability, a foundation of predictable economic conditions that allow families and businesses to be confident in planning ahead and making investment and hiring decisions,” he said.
The PRA has outlined a number of measures it has previously outlined to reduce the regulatory burden, such as introducing the international Basel III bank capital accord in the UK, easing insurance capital rules and raising bank bonuses.
The letter to the Prime Minister, as well as to Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds, contains a few new proposals beyond the concierge service and a commitment to scrapping redundant rules.
A similar letter from the head of the Financial Conduct Authority to the Prime Minister, published last week, contains a number of new proposals, including reforming mortgage lending and anti-money laundering checks.
Reeves used her first Mansion House speech last November to accuse financial regulators of rules introduced after the 2008 financial crisis and of “controlling risk but not growth.”
“They will want to explore with colleagues at HM Treasury and the Department of Trade and Industry whether there are wider changes to simplify and simplify the UK regulatory system or support UK growth in other ways,” Woods said.
The PRA said it would exempt insurers from requiring pre-emptive investment approval by allowing retroactive approval. He also pointed out that the regulator will announce plans to reduce banks’ reporting requirements this year.
The PRA is likely to work with the FCA, the UK Investment Office and other stakeholders this year to come up with proposals for concierge services, Woods said.
