Closer U.S. ties would ‘reboot’ UK finance after Brexit, says report

Britain should move further and faster in reforming its financial rules to ‘reboot’ after Brexit by aligning with key markets in the United States and elsewhere, a report from two think tanks said on Thursday.

Britain has already launched over 30 public consultations, including on reforming insurance rules on Thursday, to keep London a globally competitive financial centre after being largely cut off from the European Union due to Brexit.

“The debate has moved on from alignment with the EU in exchange for future access. Instead, the UK should focus on closer alignment and cooperation with the U.S. and with other markets around the world,” the joint report from New Financial in London and the Atlantic Council in Washington said.

Britain should focus on “low-hanging fruit” such as faster tweaking of inappropriate rules inherited from the EU, but be wary of going above and beyond standards implemented internationally, the report said.

The report said Britain’s capital markets have the potential to grow by up to 40% if it can close the gap with the United States, this equates to an additional $75 billion annually.