FIA’s Schempp sees ‘improved political climate’ between UK and EU

Speaking at the FOW Trading London Conference in London on Thursday, Corinna Schempp said there had been a ‘reset’ in dealings between regional regulators.

“The UK wants to reset the relationship within the EU after a very difficult time,” Schempp said in a keynote address. “So is it working? You can feel it in Brussels and in London – there is definitely an improved political climate that may hopefully advance a renewed focus on working together.

“There is a new spring in everyone’s step even though it will take some time to build up deep trust.”

Schempp reiterated comments from FIA chief executive Walt Lukken this week supporting the new European Commissioner for Financial Services and the Savings and Investment Union Maria Luis Albuquerque.

“The views from the Commissioner are enormously refreshing,” she added. “There was a lot of optimism… we discussed the Commission’s new simplification strategy and she expressed the need to go beyond simplification and show the benefits for investors. I was pleased to hear her saying that we need to make future legislation simpler from the beginning. Let's be clear, the industry is not calling for deregulation or a race to the bottom. This is about the need to have more simple and effective policies and rules.”

Speaking at a European Securities and Markets Authority (ESMA) event in Paris last week, Albuquerque outlined regulation changes to make Europe more competitive by reducing fragmentation and lowering barriers to entry.

“Both the EU and the UK have a vested interest in fostering a mutually beneficial relationship and we see plenty of opportunities for co-operation,” Schempp said. “We see it in areas such as sustainable finance, digital innovation, in settlement (T+1) and financial inclusion as well as keeping in mind the importance for EU market participants to maintain access to global liquidity pools while securing financial stability for all of us.

“Ultimately, the vision for the future of EU/UK financial relations should be one of partnership and progress. We think both can create a financial ecosystem that is robust, inclusive and adaptive to the changes needed to the benefit of the global economy.”