Global clients trust the UK in times of geopolitical stress, claimed the Financial Conduct Authority’s boss in a speech today (April 30).
The FCA chief executive officer Nikhil Rathi, reflected on the current state of markets at an Association of Foreign Banks luncheon at Mansion House.
He said: “In times of operational and geopolitical stress, global clients trust the UK.
“They know ours is a system proven under pressure, with the reliable execution, deep liquidity, and resilient infrastructure they need to do business.”
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He said the 160 foreign banks in London are “central to that success”.
Rathi described the FCA as a “reform-minded regulator” that is willing to change.
“For regulation to keep pace, we have to remain clear about our standards, but more flexible in how they are applied,” he said.
He announced new guidance, published today (April 30) which outlines how firms can use distributed ledger technology within its existing rules.
The regulator said this will make it easier for asset managers to unlock the benefits of fund tokenisation.
Rathi said tackling financial crime is a priority for the regulator and said it would be stepping up action on market abuse and insider trading.
He said: “The FCA’s primary task is to ensure market integrity. In a more volatile global environment, that only becomes more important.
“So fighting financial crime is a priority for us and we are increasingly hawkish.”
Closing his speech, Rathi said the FCA will remain clear on its standards and “rigorous in how we uphold them”.
He added: “But also open — working with the market, willing to make changes where needed, reform-minded.
“It’s what will allow you to manage risk, deploy capital and serve clients even in uncertain times. And, we believe, it’s what will help ensure the UK remains a competitive global financial centre.”
tara.o’connor@ft.com
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