Maintain momentum behind capital markets reform, Kalifa tells PM

Monday, September 12, 2022 5:00 a.m.

Truss and Kwarteng must pursue capital markets reform, Ron Kalifa tells City AM

Ministers must maintain the ‘continuity’ and ‘momentum’ behind capital markets reform to cement the UK’s position as a global financial powerhouse, the author of a major fintech review has warned ordered by the government.

Ron Kalifa, who orchestrated the Kalifa Review of UK Fintech in 2021, said that pushing through the recommendations of his review and those of the UK Listing and Secondary Markets Reviews, conducted by Lord Jonathan Hill and Freshfields lawyer Mark Austin, is expected to remain firmly on the agenda of new Prime Minister and Chancellor Kwasi Kwarteng.

“Maintaining the gravity, continuity and momentum behind reform will be essential, and the government must continue to really use its convening power to drive change in capital markets,” Kalifa said. AM City in an interview.

“It will be crucial to ensure that private and public markets are better connected, and to ensure that there are research and fiscal policies to support this.”

Comments come after AM City revealed in April that Kalifa had written to then-City Minister John Glen outlining a number of proposals to boost the landscape for companies looking to float and raise capital in the UK.

Among its recommendations were a review of the business research environment aimed at strengthening the depth and quality of analysis of investments in UK businesses, as well as changing tax rules to prevent businesses from benefiting from tax breaks at an early stage before going overseas to go public.

Kalifa said City AM tWhile there were literally “no results”, the recommendations will be “swept away” in Mark Austin’s Secondary Capital Raising Review, released in July.

Recommendations from its own fintech review published in February 2021 were “well underway and in the works”, he added.

Under former Chancellor Rishi Sunak, the Treasury sponsored a number of reviews in a bid to maintain the UK’s status as a fintech innovation hub and incentivize more high-growth businesses coming to market in London.

However, plans to promote the capital as a tech hotbed have been hit by a series of high-profile blows in recent months, as foreign companies continue their bargain-hunting raids on cheap listed tech companies. in London, and that national tech darlings are looking elsewhere to float.

London Stock Exchange officials and ministers have also been battling to get local chipmaker Arm listed, which appears set for a primary listing in New York. The fight is now in play after the resignation of several key players leading negotiations with Arm’s owner, Japanese investment giant SoftBank.

“Positive and hopeful”

Kalifa added that he was “actually quite positive and hopeful” about the prospects for Truss and Chancellor Kwasi Kwarteng, saying their track record of reforming Britain’s fintech and financial sector had been strong.

“I’ve had several meetings with the Chancellor in his previous role, where he’s asked me to bring entrepreneurs to meet him, and he’s always been very engaged and interested in innovation,” he said. he declares.