Starmer rules out EU financial services alignment talks

"A huge amount of work and effort has gone into improving the landscape for financial services in the UK, which are essential for a viable domestic capital market, he said. The UK now has materially less friction than most other European jurisdictions as a venue for listing. If we want IPOs to come back, if we want the City to thrive, if we want public markets to be a key part of the overall financial markets landscape this is all been really important."

"UK regulators have been under pressure to dismantle a series of EU-era rules that politicians argue have hampered competitiveness and growth. Subsequent changes have led to larger banker bonuses, lower capital levels and looser listing rules for companies seeking to float in London. Reversing those changes would risk derailing the recovery in London's stock market listings, according to Steve Fine, the chief executive of Peel Hunt investment bank."

Keir Starmer will exclude financial services from negotiations on closer alignment with the EU, meaning City firms will not be pushed back to the Brussels rulebook. Government officials will continue to explore cooperation where it benefits the economy but will not pursue full regulatory realignment. City lobbyists expressed relief after years of Brexit-related uncertainty. UK regulators dismantled several EU-era rules, producing larger banker bonuses, lower capital levels and looser listing rules. Reversing those changes could risk derailing London's recovery in stock market listings and dissuade IPOs. Industry leaders say preserving the post-Brexit landscape supports a competitive venue for listings and a viable capital market.

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