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Brexit, as we all know, means Brexit
That's it, we're off - so long, and thanks for all the fish(1). Looks like Prime Minister May's going to have to go to Parliament first though, as those pesky High Court judges have said that royal prerogative only goes so far, and definitely not as far as inking Article 50 without Parliament's consent. Don't bother holding your breath though; there's another round to go in the Supreme Court.
And what's Capital Markets Union?
Capital Markets Union (CMU) is the European Commission's plan to mobilise capital in Europe, channeling it to all companies, including SMEs, and infrastructure projects that need it to expand and create jobs. By linking savings with growth, the idea is that it will offer new opportunities for both savers and investors.
As the EC explains, it believes "deeper and more integrated capital markets will lower the cost of funding and make the financial system more resilient. All Member States of the EU will benefit from building a true single market for capital."
And there's the rub - 'All Member States'. So, what does CMU mean for the UK in a Brexit world?
Squaring the circle
With curiosity piqued, I headed into the City to listen to Katherine Braddick (Director General, Financial Services, HM Treasury) speak on the priorities for the UK-based financial services industry with regard to CMU.
It was 'front-foot' stuff - here's the pith:
- The UK has taken a leading role in bringing ideas and expertise to the European Commission on how CMU would work
- The CMU action plan launched a year ago, and the building blocks need to be in place by 2019 - time is of the essence
- Securitisation is the 'totemic' idea in CMU - and, if done well - spreads risk, and enables bank balance sheets to be used to get credit to the real economy
- The UK and Europe need money to flow across borders within Europe, and into and out of Europe
- The UK is the largest financial centre in Europe, capital markets in the UK are twice as developed as anywhere else in Europe, and the UK is a world-leader in FinTech - in short, there is no substitute for in Europe
- We have the chance to deliver real world outcomes for consumers, businesses and investors, and work thus far has been practical, purposeful, and pacey - now is NOT the time to get stuck in endless policy debates in the European Parliament...
Conclusion
Ms Braddick's conclusion was clear - the UK will continue to contribute to CMU.
So now we know.
Footnote:
- So Long, and Thanks for All the Fish is the fourth book of the Hitchhiker's Guide to the Galaxy 'cycle' written by Douglas Adams.
Dr Louise Beaumont is Vice Chair - Open Bank Working Group. ''is a collective of banking, open data and FinTech professionals, formed at the request of the UK Government.
Louise has over twenty yearsâ experience in growing companies - from initial spark, to operationalisation, results delivered, and value created. Having previously worked for organisations such as GLI Finance, Siemens, Hewlett Packard, Microsoft, and Capgemini. Louise has advised key UK government departments and units on FinTech and AltFin including; HM Treasury, British Business Bank, Government Office for Science, Cabinet Office, UK Trade & Industry, Department for Business, Innovation & Skills, and Number 10 Downing Street's Policy Unit.
