The Bank of England said it is considering setting up a “concierge service” to help foreign companies looking to establish a UK operation, as it responded to the government’s request for growth-enhancing measures.
The central bank has been studying a similar service that is already offered by Singapore, Sam Woods, head of the BoE’s Prudential Regulation Authority, said in his letter to the prime minister published on Monday.
The government has called on the PRA and 16 other UK regulators to present ideas for rule changes that could increase risk-taking and investment in the economy. Sir Keir Starmer has vowed to “rip up” bureaucracy as he seeks to deliver on his promise to boost growth.
Woods said the PRA “recognises and strongly supports” the government’s focus on enhancing growth and “responsible risk-taking”. But he made clear that its main objective was still to preserve financial stability, without which growth would suffer.
“Our primary objectives speak mainly to stability, which is the basis for a predictable economic environment that allows households and businesses to be confident in planning ahead and making investment and hiring decisions,” he said.
The PRA listed several measures it has already outlined to reduce the burden of regulation, such as delaying the introduction of the global Basel III agreement on bank capital in the UK, simplifying capital rules for insurers, and lifting the cap on bankers’ bonuses.
Its letter to the prime minister, which was also sent to chancellor Rachel Reeves and business secretary Jonathan Reynolds, contained relatively few new proposals beyond the concierge service and a commitment to remove overlapping regulations.
A similar letter from the head of the Financial Conduct Authority to the prime minister that was published last week contained a number of new proposals, including considering scaling back rules on mortgage lending and anti-money laundering checks.
Reeves used her first Mansion House speech last November to accuse financial regulators of going too far with rules introduced after the 2008 financial crisis and “regulating for risk, but not regulating for growth”.
Woods said he “would like to explore with colleagues in HM Treasury and the Department for Business and Trade whether there are wider changes which could help to simplify and rationalise the UK regulatory regime or support UK growth in other ways”.
He said the PRA would free insurers from needing pre-emptive authorisation of investments by allowing retrospective permission. He added that the regulator would also outline plans to cut banks’ reporting requirements this year, having already cut them by a third for insurers.
The PRA could work with the FCA, the UK’s Office for Investment and other stakeholders to present proposals for a concierge service later this year, Woods said.