HMT package of UK fintech proposals include FCA ‘scale box’, CBDC Taskforce, and capital markets reform

Article summary

The chancellor of the exchequer, Rishi Sunak, has announced proposals which aim to enhance the UK’s competitive advantage in fintech and financial services, and ensure the UK ‘remains at the cutting edge of digitising finance’. Sunak confirmed the UK will be taking forward many of the recommendations made in the recent Fintech Review led by Ron Kalifa, and the Listing Review, led by Lord Hill. The proposals include: a new Financial Conduct Authority (FCA) ‘scale box’ and creation of a Centre for Finance, Innovation and Technology (CFIT); a new HM Treasury/Bank of England (BoE) Taskforce to explore a possible UK central bank digital currency (CBDC); and additional plans for capital markets reform, including a consultation on changes to the UK’s prospectus regime and a separate consultation including proposals to delete the share trading obligation and double volume cap. The Department for International Trade (DIT) has also...