Long term competitiveness

TheCityUK’s response to the House of Lords’ International Relations and Defence Committee inquiry into the UK’s future relationship with the US

01 April 2025
3 minutes
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The UK-US financial and related professional services relationship is an important one. The US is the UK’s largest single-country trading and investment partner in financial services, and vice-versa. The UK and US are market leaders in key sectors such as investment banking, asset management, insurance, FinTech and professional services. All these sectors play a critical role in delivering economic growth, jobs and national economic security.

The newly inaugurated Republican administration and Congress offers a strategic opportunity to build on already extensive and productive exchanges on policy issues impacting the financial and related professional services industry.

There are opportunities to strengthen the US-UK trade and investment relationship in financial and related professional services including:

  1. Enhancing the US-UK data bridge to encompass financial services, fostering closer regulatory alignment on broader technological advancements, including Artificial Intelligence (AI), digital assets, and cybersecurity.
  2. Aligning UK pension reforms to attract US investment in productive and financial assets.
  3. Cooperation to work towards a common or mutually recognized framework of guardrails for AI and related supervisory frameworks.
  4. Fostering cooperation in short-term business mobility such as streamlining the UK’s Senior Managers and Certification Regime (SMCR).
  5. Developing a cross-border, transatlantic innovation ecosystem which combines private capital with the development of next generation technologies, particularly in the fields of AI, distributed ledger technology (DLT), cybersecurity, and quantum computing.

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