While acknowledging the improved economic stability over the past year, marked by four Bank of England rate cuts and new trade agreements with the US, EU, and India, the chancellor also signaled a wave of upcoming regulatory reforms in financial services.
On Tuesday, as the FTSE 100 crossed the 9,000 mark for the first time in history, Reeves announced that the index would soon incorporate shares listed in both US dollars and euros, building on last year’s changes to the Listings Regime.
Ahead of her speech, the Financial Conduct Authority (FCA) had already introduced significant revisions to its Prospectus Rules, aimed at streamlining the listing and capital-raising process for companies of all sizes. Reeves highlighted that these reforms also include expanded access to corporate bonds for retail investors.
She added that the first trades under the new PISCES system are expected to take place later this year. In tandem, Reeves announced the formation of a new Listings Taskforce, in partnership with the Office for Investment, focused on attracting top global firms to IPO in London.
The chancellor also highlighted her Financial Services Growth and Competitiveness strategy, a central element of the Leeds Reforms unveiled earlier that day. She described the package as the most significant overhaul of financial regulation in more than a decade.
Reeves emphasised that the guiding principle behind these reforms is to roll back excessive regulation that stifles growth in an effort to eliminate all risk.
As part of this initiative, she said new performance targets will be set for both the FCA and the Prudential Regulation Authority to reduce approval and authorisation times.
