UK Central Bank Weighs ‘Concierge Service’ to Draw Foreign Investments

The Bank of England could establish a “concierge service” to help foreign companies do business in the United Kingdom.

It’s a similar service to one already available in Singapore, the Financial Times reported Monday (Jan. 20), citing a letter from Sam Woods, head of the central bank’s Prudential Regulation Authority (PRA) to the prime minister.

The U.K. government has called on the PRA and other regulators to come up with possible rule changes that could boost risk-taking and investment in the economy. Prime Minister Keir Starmer has pledged to “rip up” bureaucracy to fuel growth, the report said.

Woods said the PRA “recognizes and strongly supports” the government’s focus on enhancing growth and “responsible risk-taking,” according to the report. However, he made clear that its key objective remains preserving financial stability, without which growth would suffer.

“Our primary objectives speak mainly to stability, which is the basis for a predictable economic environment that allows households and businesses to be confident in planning ahead and making investment and hiring decisions,” he said, per the report.

The PRA outlined a list of measures to ease regulatory burdens, including delaying the introduction of the global Basel III agreement on bank capital in the U.K., simplifying capital rules for insurers, and removing a cap on bankers’ bonuses, the report said.

A similar letter sent last week to the prime minister from the U.K.’s Financial Conduct Authority included other proposals, such as considering easing rules on mortgage lending and anti-money laundering checks, according to the report.

Earlier this month, Woods testified before the House of Lords that it is possible to relax restrictions on bankers without triggering “a race to the bottom” on financial regulation.

This is happening as observers on the other side of the Atlantic expect the United States to relax its financial regulation under President Donald Trump.

“In the meantime, however, the underlying issues are still there, and key among them will be examinations of the risks and rewards inherent in bank-FinTech partnerships, cybersecurity, capital requirements and innovation,” PYMNTS wrote last month.

For example, the Synapse bankruptcy, which left tens of thousands of customers unable to access their money, could continue to have ripple effects this year.