Tag: financial services

Scotland and City of London to collaborate and seize opportunities for business and investment

Showcasing Scotland’s world-class financial services

First Minister Humza Yousaf travelled to London yesterday (Monday, 29 January) to take part in a number of events in partnership with the City of London Corporation, including agreeing an enhanced framework to promote Scotland and London as centres of excellence for financial services.

The latest evolution of the partnership will ensure the benefits of a thriving financial services industry are shared across the UK. It is rooted in the ethos that financial sectors in Scotland and London have much to gain from cooperating and coordinating.

The framework complements ongoing activity to double assets under management in Scotland’s financial services sector to £1 trillion by 2030, thus supporting more jobs, as outlined in Scottish Financial Enterprise’s Growth Strategy.

It will ensure benefits are maximised for Scotland as the Corporation pushes for the UK to be a global centre for nature finance, and targets other shared priority areas including green and sustainable finance, financial inclusion and social mobility.

Long-standing annual engagements will continue – including the annual Burns Supper, hosted on rotation between Scotland and the City of London Corporation since 2020 – ensuring regular promotion of Scotland’s financial sector to UK-wide and international investors in London.

It is part of broader work between the Scottish Government, Scottish Development International, global investors and partnerships – including that with the City of London Corporation. It allows the Scottish Government and City of London Corporation to work together to support the aims of businesses in their respective financial sectors.

First Minister Humza Yousaf said: “Scotland has much to gain from strengthening our relationship with the City of London – by providing access to global investors and collaborating on shared initiatives, we can reap the benefits of a thriving financial services industry for our centres of excellence.

“Outside of London, Scotland both has the UK’s largest financial services centre and is the most attractive location in the UK for foreign direct investment. By working with the City of London Corporation towards shared goals, we can continue to drive that investment, and grow our economy.

“This latest partnership agreement is enhanced in terms of the scope and focus of our ambition, and will ensure our priorities continue to align with those of businesses in the financial sector.” 

City of London Corporation Policy Chairman Chris Hayward said: “The twin financial and professional services sectors of London and Scotland represent a critical part of the UK economy.

“We’ve been delighted to partner with the Scottish Government on a range of issues where we have alignment and shared challenges: in sustainable finance, technology, talent and growth.

“Today’s meetings and Burns Supper represent an opportunity to really explore these areas; to identify areas of complementarity; and determine how we can work together for the benefit of our shared sectors, economies and people.”

Core-Asset recognised as one of the top 200 women-powered businesses

Female-led Scottish scale-up crowned one of the UK’s best

SCOTLAND’S leading financial services recruiter has been identified by JP Morgan Private Bank as one of the top 200 women-powered businesses in the UK. 

Founded by respected entrepreneur Betsy Williamson in 2005, Core-Asset Consulting receives the accolade shortly after being named a leading trailblazer at the end of 2022.  

The firm – which now turns over £26.5m a year – places a strong focus on diversity, equity, inclusion and progressive working practices for both men and women. 

Louise Powrie, co-Managing Director of Core-Asset Consulting, said: “This year’s standings perfectly reflect our continually growing upward trajectory which has seen us truly excel as a business.

“We place inclusion at the heart of what we do and have recently launched a new initiative to help improve socio-economic diversity in the sector – this accolade from JP Morgan highlights that we are more than meeting these goals.

“As an Edinburgh-based business that has grown from a start-up into Scotland’s leading financial services recruiter, the report – which celebrates women-powered businesses – should serve as a driver for all companies across the country which are fuelling female ambition and advancing financial equality. 

“We are delighted to be a part of underlining the incredibly diverse role that women play in impacting and shaping British businesses and the economy.

“Each and every one of the top 200 businesses deserve their recognition – it’s fantastic high-growth businesses like these that will fuel our future.”

Core-Asset was born out of Betsy’s desire to take the best of her experience of large corporate recruiters, applying the focus on infrastructure and training to a more sector-specialised business.

It ranked 38 out of 200 in the third instalment of the annual JP Morgan report. It analysed over 46,000 companies that together form the UK’s high-growth ecosystem, revealing 13,255 women-powered businesses founded, led, owned, or managed by women.

Charlotte Bobroff and Stephanie Khalef-Wassmer, Co-heads of UK Women & Wealth and Executive Directors at J.P. Morgan Private Bank said: “Investing in the advancement of women is a focus of our firm that we believe is critical. 

“Over the years, we have developed and launched a range of resources, networks and tools that enable women to progress in their career journeys as despite their impressive performance, women-powered companies still face the challenge of being underrepresented compared to their male counterparts.”

Core-Asset Consulting is Scotland’s pre-eminent recruitment and headhunting agency dedicated to financial and professional services. 

Based in Edinburgh, the firm employs 24 people and works across the entire financial services sector, from the smallest boutiques to the biggest global players.

Initially the firm carved its reputation in Scotland’s globally-renowned asset management sector. However, the success of its model allowed it to expand across the wider financial services market. It now boasts dedicated accounting, investment operations and finance teams and also works in Scotland’s thriving legal sector.

New regulations for Buy-Now-Pay-Later lenders set to protect 10 million consumers

  • New regulations are to clamp down on unregulated Buy-Now Pay-Later creditors and ensure consumer protection
  • Andrew Griffith, City Minister will work with the financial services sector to ensure affordable credit is available to people who struggle to access it
  • At the “Financial Inclusion Policy Forum” in Birmingham the minister will meet debt advisors who will help deliver free debt advice to more than 1.5 million people in England over the next three years.

NEW regulations for Buy-Now Pay-Later consumers are set to help protect an estimated 10 million customers from unconstrained borrowing while still ensuring those who need it have access to interest-free credit.

With more people taking out these credit agreements and the potential risks of consumers being exposed to financial harm; the UK Government is setting out proposed new regulations.

It will mean Buy-Now Pay-Later credit products are set to be regulated by the FCA and consumers will have the new right to take complaints to the Financial Ombudsman Service.

Under new rules providers will have to give consumers key information about their loans and issue credit that is genuinely affordable.

Economic Secretary to the Treasury, Andrew Griffith said: “People should be able to access affordable credit, but with clear protections in place. That is why these proposed regulations are so important.

“Today’s summit will also help regulators and banks better understand the best ways to support people who feel boxed in by debt and open up the financial system to people who find it more difficult to access.”

A summit of banks and debt charities will also be convened today by the City Minister who will urge the group to work together to improve financial education, ensure affordable credit is available to people who struggle to access it and remove the barriers which people with disabilities, like sight loss, can face when accessing financial services.

The latest “Financial Inclusion Policy Forum” will take place at the Money Advice Trust in Birmingham, bringing together the leading lights from the financial services sector, charities, consumer groups and regulators.

They will discuss the best ways to ensure access to affordable credit and remove barriers which people with disabilities, like sight loss, can face when accessing financial services.

Buy-Now Pay-Later can be a quick, easy, and helpful way for people to manage their finances, allowing them to spread the cost of a full purchase over time without paying interest.

However, because many of the agreements aren’t currently regulated and rely on minimal credit checks, lenders are not required to give key information to borrowers, and some people may end up borrowing more than they can affordably repay.

For those who are facing financial difficulty, new contracts awarded by the Money and Pensions Service this year are expected to provide free debt advice to more than 1.5 million people in England over the next three years.

During the forum the City Minister will also discuss the most effective ways to help those in financial difficulty.

The Edinburgh Reforms: Chancellor to announce package of financial reforms during visit today

  • Chancellor to announce reforms to drive growth and secure the UK’s position as world leading financial services hub in Edinburgh today.
  • Ringfencing rules are set to be updated to release banks without major investment activities from the regime, regulators will be given a new remit to deliver growth and a widespread review will repeal hundreds of pages of EU law.
  • The Government will continue to deliver reforms across the economy to drive economic growth during challenging times.

Chancellor, Jeremy Hunt, will announce a package of over 30 regulatory reforms to secure the UK’s place as the world’s foremost financial centre during a visit to Edinburgh today,

The “Edinburgh Reforms” will build on the unparalleled strength of the UK’s financial services sector, taking advantage of the opportunities provided by the UK’s exit from the European Union to tailor regulations to suit the country’s needs.

Today the Treasury will publish its plan to rigorously review, repeal and replace hundreds of pages of EU regulation ranging from disclosure for financial products to prudential rules for banks, creating a tailor-made UK regulatory framework based on international best practice that balances burden on business with protection for the consumer.

Rules that hold back growth will be reviewed, with overbearing EU rules which put companies off listing in the UK being overhauled, among dozens of regulations within scope of the Financial Services and Markets Bill.

The Government will also announce changes to ringfencing rules which currently require major banks to separate their retail and investment arms, and retail banks have to comply even if they don’t have an investment arm, a time consuming regulatory exercise.

Reforms will cut red tape and boost banking competition in response to the Skeoch review by freeing retail focused banks from ringfencing rules while maintaining protections for consumers. The UK’s world leading regulatory regime has evolved over the past decade and will continue to protect consumers and safeguard financial stability.

Chancellor of the Exchequer, Jeremy Hunt said: “This country’s financial services sector is the powerhouse of the British economy, driving innovation, growth and prosperity across the country.

“Leaving the EU gives us a golden opportunity to reshape our regulatory regime and unleash the full potential of our formidable financial services sector.

“Today we are delivering an agile, proportionate and home-grown regulatory regime which will unlock investment across our economy to deliver jobs and opportunity for the British people.”

This builds on the reforms to Solvency II announced in the Autumn Statement which will unlock over £100 billion for productive investment from UK insurers over the next decade, such as clean energy infrastructure.

The Chancellor is also expected to issue new mandates to the Financial Conduct Authority and the Prudential Regulation Authority setting out how they will help deliver growth and promote the international competitiveness of the UK.

The financial services sector is vital for Britain’s economic strength, contributing £216 billion a year to the UK economy. This includes £76 billion in tax, enough to fund the entire police force and state school system, while employing over 2.3 million people – with 1.4 million outside London and 163,000 people in Scotland.

While in Edinburgh today, the Chancellor will meet with top financial services CEOs to discuss these reforms and how the sector can further drive investment and growth in the UK.

As confirmed in the Autumn Statement, the government will look to announce changes to EU regulations in four other growth industries by the end of next year, including digital technology, life sciences, green industries and advanced manufacturing.

Financial services reforms ‘set to boost Scotland’s economy’

  • Economic Secretary, Andrew Griffith MP, hailed the crucial role Scotland plays in maintaining the UK’s position as a world leader in financial services as part of a speech given in Edinburgh today.
  • He also visited Scottish Widows following insurance industry reforms which could unlock over £100 billion of investment in UK infrastructure and green projects, including in Scotland.

Economic Secretary Andrew Griffith was in Edinburgh today, where he hailed the success of Scotland’s financial services sector and the strength of the Union.

Speaking at TheCityUK’s Annual Conference, the minister praised the energy and vitality of Edinburgh, the second biggest financial hub in the UK, with one seventh of Edinburgh’s workers – 50,000 people – employed by the sector.

Mr Griffith then visited life insurance and pensions firm, Scottish Widows, following reforms to regulation (Solvency II), which could unlock over £100 billion of investment in the UK over the next ten years, boosting infrastructure, green growth and Scottish jobs.

Economic Secretary to the Treasury, Andrew Griffith said: ““Scotland’s economy makes a crucial contribution to maintaining the UK’s position as a leading global hub for financial services – with Edinburgh and Glasgow the two largest clusters outside of the City of London.

“Our reforms to Solvency II have the potential to unlock over £100 billion of investment into the UK economy, including in Scotland – in things like infrastructure and sustainable energy.

“We are committed to maintaining the UK’s place as one of the most open and dynamic markets in the world – and will set out further plans for ambitious reform, in the coming weeks.”

Craig Thornton, Chief Investment Officer, Scottish Widows: “By working together the insurance industry, Government and the Prudential Regulation Authority will now be able to unlock a significant investment boost for the UK economy, while continuing to help people secure their financial futures.

“Scottish Widows has already invested around £3bn in social housing projects across the UK, however we will be able to invest billions more in projects which are vital to the growth of the economy and the transition to net zero.

“We’re looking forward to moving on to the next stage of the reform process at pace, which includes working with Government to accelerate the vital work of identifying suitable investment opportunities in the UK which will benefit from the recently announced changes.”

Solvency II is a set of regulations dictating how much financial reserves insurers have to hold against the risks included in their policies. It also dictates how they are required to report these risks to regulators.

The rules were implemented in 2016, and were a compromise between EU member states. Leaving the EU has enabled us to reform these rules to suit the unique features of the UK insurance market.

At the Autumn Statement, the Chancellor announced steps to reform the legislation that would unlock over £100 billion of investment in UK infrastructure, and drive down prices of life insurance products for consumers.

These included:

  • A 65% reduction in the risk margin for life insurers, and 30% reduction for general insurers. This will help free up capital on insurers balance sheets.
  • A significant increase in flexibility of the matching adjustment – freeing up money for long-term assets such as infrastructure.
  • A meaningful reduction in the current reporting and administrative burden on firms, such as doubling the thresholds at which the regime applies.

These steps act as a first course of the Government’s ambitious agenda to seize on our Brexit freedoms and reform our world leading financial services sector, so that it works in the interest of British people and consumers.

They also build on the measures within the Financial Services and Markets Bill – which grants the UK the power to repeal and replace hundreds of pieces of burdensome EU laws; protects access to cash for communities in Scotland; and compensate the victims of APP fraud.

Lloyds Bank’s tech hub boosts digital spotlight on Scotland

Lloyds Banking Group has unveiled the next stage of its plan to boost Scotland’s fintech workforce in the fastest-growing digital economy outside London.

As part of the launch of its new tech hub in Edinburgh in March 2019, Lloyds announced a recruitment drive to create a new 500-strong team tasked with helping transform the digital experience for Bank of Scotland, Lloyds Bank, Halifax and Scottish Widows customers.

As part of the next stage in the development of the digital innovation centre, it has now joined forces with Fintech Scotland on the hunt for the country’s most exciting start-ups and young businesses for a new partnership.

The new incubator programme – Launch* – based out of the Edinburgh hub – will bring together start-ups and scale-ups to tackle the challenges of digital services and sustainability, with plans for its first industry showcase next year.

In addition to the tech hub’s team of software engineers and other digital roles which is more than 50% complete, – the first specialist mobile quality engineering team was created, adding an additional 16 roles to the tech-based talent pool in Scotland.

The Edinburgh hub was set up with the aim of transforming how the bank operates behind the scenes, creating new services and tools for customers, as well as enhancing Scotland’s thriving tech community.

Philip Grant, Chair of Lloyds Banking Group’s Scottish Executive Committee, said: “We’re putting lots of energy into shaping the financial services of the future to meet customers’ changing needs, and having cutting-edge fintech talent in action behind the scenes is key to keeping customers connected to their finances.

“We have just launched a pilot Scottish Widows mobile app to help reinvent saving for workplace pensions customers. Using digital features built by our engineers in our innovation labs, it will enable millions of people to start engaging with their pension in a similar way to their everyday banking by helping them see a clearer picture of their financial future.”

Nicola Anderson, Acting Chief Executive, Fintech Scotland, said: “Creating opportunities for collaboration across Scotland’s competitive tech scene will drive innovation as start-ups work together with established financial firms on how to trailblaze the industry’s future in partnership.

“The Launch innovation labs highlight Lloyds’ commitment to developing talent in fintech. It provides a boost in confidence for the industry and shows the power of collaboration for mutual benefit – we’re looking forward to seeing the results in next year’s industry showcase.”

The Group continues to be an active member of the wider technology scene in Scotland, hosting more than 5000 delegates at events and training sessions at its city centre hub last year as well as regular online webinars and courses.

At the start of the year – before the pandemic – it hosted more than 500 delegates at a number of events, including Queercode, the first LBGTQ+ coding meet up in Scotland. As well as working in partnership with Fintech Scotland and SQA-accredited digital skills academy CodeClan, the bank has also invested in providing training for colleagues who want to diversify into careers in technology.

It launched its own coding academy in 2018 which has now expanded from Edinburgh across the UK, as well as the WomenConnecTech network, to help provide opportunities and support to women looking to build careers in computer science. Graduates of the coding academy are now established software engineers working within the digital labs.

Scotland’s financial services sector has a secure, optimistic future, say political and business leaders.

Scotland’s financial services sector has a secure, optimistic future, thanks to investment in innovation and the rapid rise of tech disrupters, according to political and business leaders. Continue reading Scotland’s financial services sector has a secure, optimistic future, say political and business leaders.