BoE COULD ENFORCE REGULATORY CRACKDOWN

Sam Woods, deputy Bank of England governor and chair of the Prudential Regulation Authority, told the Sunday Telegraph yesterday that he is determined to ensure that the financial system remains finely regulated in order to avoid a crisis akin to that seen in 2008. He said: ?I think it is possible that as we come out of the reform phase, and enter a phase where we?re defending the reforms that have been put in place, that you may see more enforcement activity.? He also said he would defend ringfencing regulations that separate retail banking from investment activities that are considered more risky (City AM, p2).

BUSINESSES SHOULD BE INCLUDED IN BREXIT TALKS, URGES CBI

The Confederation of British Industry (CBI) has urged the government to ensure that executives from leading businesses are asked to play key roles in post-Brexit UK trade talks with the EU and US (Financial Times, £, online only).  The Times (£, p40) reports there is a growing fear among business leaders that a deal with the EU will not be reached before the transition period expires in December 2020.

Meanwhile, a survey from the CBI and PwC has found that optimism among the UK's financial services companies has risen for the first time in three years, with 14 per cent of businesses expecting to see volumes grow in the first three months of 2020 (The Times, £, p40).  In addition, a survey from YouGov and the Centre for Economic and Business Research (CEBR) found that consumer confidence - in personal finances and spending - lifted significantly following the conclusive election result in December (The Times, £, p40).

NEWS IN BRIEF

A third member of the Bank of England's Monetary Policy Committee (MPC) indicated yesterday that he would vote for a cut in interest rates later this month (Telegraph, £, B6).

Fewer than half of the City of London Corporation's representatives have signed a voluntary Members? Diversity Charter that pledges seven commitments to attract talent from a more diverse range of backgrounds (City AM, p4).

Gender equality in senior roles remains ?generations away?, according to the 2020 Sex and Power Index from the Fawcett Society (Financial Times, £, p2). The report also highlights an ?alarming lack of women of colour? in senior positions.

British companies were fined almost £300 million for breaching anti-money laundering rules in 2019, according to a report published today by consultancy firm Encompass (The Times, £, p43).

A record number of Londoners are relocating to the north of England because of lower house prices and a better overall quality of life (The Times, £, p43).

WHAT THE COMMENTATORS SAY

Columnist John Dizard argues in the Financial Times (Fm, p8) that an extension of Basel derivative rules - in particular the uncleared margin rules (UMR) - may end up creating deadlines that are ?impossible to achieve?. He suggests that the regulatory process has ?become self-defeating? and risks freezing up capital flows. Mr Dizard concludes that the Basel regulatory process has been ?partly captured by those it was intended to regulate?.

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