Jeremy Hunt is to amend rules about broking houses issuing research in an attempt to claw back financial services business from Europe.
The chancellor is set to repeal a European law that required securities houses to split research from trading and charge for it separately in his Mansion House speech, Bloomberg reported today.
Brokers traditionally used research as a soft marketing tool to encourage institutions to put business their way, but this was outlawed under the MIFID II rules though US firms were given a year’s grace to get their processes in order.
That grace period came to an end on 3 July and Hunt is expected to take advantage on Monday with plans for the UK to scrap the requirement to be a key part of the annual Mansion House speech.
As well, the chancellor is expected to reveal insurance companies based in the UK are to invest billions into startups and infrastructure projects following a review last year by lawyer Rachel Kent into how to boost investment in the UK.