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The Bank of England said it was considering setting up a “concierge service” to help foreign companies looking to set up business in the UK, in response to the government’s call for measures to boost growth.
The central bank is studying a similar service already offered by Singapore, Sam Woods, head of the BoE’s Office of Prudential Regulation, said in a letter to the prime minister published on Monday.
The government has invited 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 “tear apart” red tape as it seeks to deliver on its promise to boost growth.
Woods said the PRA “recognizes and strongly supports” the government’s focus on increasing growth and “responsible risk-taking”. But he made it clear that his main goal is still the preservation of financial stability, without which growth would suffer.
“Our primary goals are about stability, which is the foundation for a predictable economic environment that allows households and businesses to be confident in planning ahead and making investment and employment decisions,” he said.
The PRA has outlined several measures it has already outlined to reduce the regulatory burden, such as delaying the introduction of the global Basel III bank capital accord in the UK, simplifying capital rules for insurers and removing caps on bankers’ bonuses.
His letter to the prime minister, which was also sent to chancellor Rachel Reeves and business secretary Jonathan Reynolds, contained relatively few new proposals beyond a concierge service and a commitment to remove overlapping regulations.
A similar letter from the head of the Financial Conduct Authority to the Prime Minister published last week contained a number of new proposals, including consideration of reducing 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 “regulation for risk but not regulation for growth”.
Woods said he would “like to explore with colleagues at HM Treasury and the Department for Business and Trade whether there are wider changes that could help simplify and streamline the UK regulatory regime or support UK growth in other ways”.
He said the PRA would relieve insurers of the need for pre-emptive investment approval by allowing retrospective approval. He added that the regulator would also outline plans to reduce bank reporting requirements this year, after already cutting them by a third for insurers.
The PRA could work with the FCA, the UK Investments Authority and other stakeholders to present proposals for a concierge service later this year, Woods said.
