Thank you, Miles, and good morning, everyone.
It’s a great pleasure to welcome you all to TheCityUK International Conference.
I’d like to start by thanking our sponsors Freshfields and State Street, as well as our superb group of speakers and panellists who will be sharing their valuable time and insights with us today.
This is our fourth international conference and in the fourth month of the year. And I’m sure that I’m not alone in feeling that more has happened in the last four months even than in the last four years – and those were four years that themselves packed a lot in.
So where does this uncertain and volatile world leave the UK and its role as a global financial centre in an uncertain and volatile world.
Certainly, although we may be getting used to this age of chaos – or perhaps immune to it - it doesn’t make it any easier to anticipate or respond to. The bedrock assumptions that have supported the global economy for decades – the rules-based world order - are weakening. And that familiar feeling, of being glued to our phones for updates on the latest crisis or market move, is back and stronger than ever.
The American poet Robert Frost perhaps summed up the situation best when he said: “Most of the change we think we see in life is due to truths being in and out of favour.”1
We are seeing different so-called truths come in and out of favour. If 2024 was the year of elections, this is the year of consequences, resulting in dramatic shifts in trade alignments and new regulatory landscapes around the world.
We have to adapt our mindset to it. We can’t ignore that uncertainty, but neither should we allow it to paralyse us. In fact, it’s precisely in moments like this when clarity of purpose and a proactive mindset matter most.
The UK has a unique opportunity to capitalise on strengths that have taken centuries to build, namely our stability, openness, and deep international connections.
London remains the world’s leading centre for foreign exchange, accounting for 38% of global FX turnover. Our insurance market is Europe’s largest and the third largest globally, with specialty risk markets that lead the world. And we are also home to Europe's largest pension fund industry, overseeing $3.2 trillion in assets in 2023.2
Our rule of law and internationally renowned legal system and reputation for legal excellence is also a huge asset.
But none of this is guaranteed going forward. To maintain this position, we must be prepared both to think differently and to act boldly.
International competitiveness starts with domestic policy, which is why, for example, we have called for a temporary suspension in stamp duty on UK shares.
Such a move would test the waters and signal to investors the UK’s willingness to make bold changes to stimulate financial activity and growth. And, independent studies have strongly suggested that should such a policy be adopted over the long-term, it would more than pay for itself.
This is just one of many moves that we think will help strengthen the UK’s position as a global financial centre. There are a few others that we think are also necessary for support.
First, let’s look at geopolitics as a source of opportunities rather than simply risks. Shifts in global power dynamics are prompting businesses worldwide to reconsider where they want to base their operations.
The UK can and should position itself as a trusted, stable partner, especially attractive to those cautious about becoming overly reliant on any single global superpower.
This is why today, alongside Freshfields, we're launching a new report exploring how our national security screening regime can become more targeted and proportionate.
In this competitive trade environment, the UK's National Security and Investment Act must be calibrated carefully, ensuring we protect genuine national security interests without deterring vital international investment.
Second, it’s essential to prioritise clarity, predictability, and efficiency in our economic and regulatory policies. Investors thrive in certainty. A stable regulatory framework, coupled with proactive, coordinated support for investors, will help the UK realise its ambitions as a base for capital. For example, as TheCityUK’s report on Sovereign Wealth Funds demonstrated last year, the UK is a trusted home for many large sovereign wealth funds and their investments.
This openness is crucial for maintaining competitiveness in the global market and it’s exactly why TheCityUK has urged the government to take an integrated approach to its industrial and trade strategies.
The two are, after all, two sides of the same coin. Clarity here will not only attract investment but also boost resilience and competitiveness.
Third, the UK’s future also lies in serving as a nexus of capital and services for new global growth corridors, such as the China-Saudi Arabia link. Both nations see value in trusted players like the UK providing advisory, legal, and financial services.
But this requires adapting our approach, moving away from a purely UK-centred model to actively supporting UK businesses in tapping these vibrant markets directly. It’s a subtle, but crucial shift, and one I’m sure will be discussed later in the day.
Fourth, our industry has got to stay one step ahead of the digital transformation. Markets around the globe, from Singapore to Luxembourg, are rapidly digitalising. We can't afford complacency. It's time to push ahead, establishing the UK as a global leader in digital bonds and financial market infrastructure.
Our regulatory sandbox initiatives are crucial in making that happen, providing a secure environment to pioneer innovations safely and effectively.
As we move forward, let’s also acknowledge the transformative opportunities presented by the energy and technological transitions. Achieving net-zero, advancing artificial intelligence, and harnessing digital assets all offer substantial growth opportunities for the UK. These challenges require government and private sector collaboration like never before.
Finally, we must keep our sense of perspective. Change doesn’t always feel good, but there are also reasons for optimism and they are compelling. From the London Stock Exchange hosting over 270 foreign companies, to our pioneering role in green finance, Islamic finance, and maritime financial services. We have world-leading capabilities that continue to attract capital and drive global financial innovation.
If we get this moment right, the UK can not only preserve its role as a global financial centre but expand it, securing talent, innovation, and growth for years to come.
I’ll now hand back to Miles to introduce our first panel of the day.
Thank you.
- ENDS -
*To be checked against delivery
NOTES:
1: From The Black Cottage (1914)
2: All data from TheCityUK
