A Foundation for Transatlantic Growth, Jobs and Security

United States-United Kingdom Financial and Related Professional Services

Dated: April 25, 2024

Executive Summary:

Since 2020, the British American Finance Alliance1 (BAFA) has supported two key U.S.-UK dialogues: the Financial and Regulatory Working Group (FRWG), and Financial Innovation Partnership (FIP).

In that time, new challenges emerged, and existing ones evolved: the COVID-19 pandemic, rising geopolitical tensions and accelerating climate and technological change. Moreover, the UK has fully left the European Union and is now designing and implementing regulations independently. Elections are expected in both countries in the second half of 2024. These will determine the political foundation of the bilateral relationship for the next four years. BAFA has identified multiple immediate priorities for the financial services sector:

• T+1 settlement: non-standard settlement cycles, cut-off times, storage requirements.
• Basel III Implementation: discussion and coordination regarding cross-border impacts.
• Asset management: regulations by both countries impacting buy-side firms.
• Sustainability and climate reporting: climate disclosure standards and Voluntary Carbon Markets.
• Data and the Digital Economy: sustaining and expanding the U.S.-UK data-bridge.

Other longer-term issues, looking towards the ongoing U.S.-UK dialogue and future FRWG and FIP
meetings, include:

• National security and cyber threats.
• Harmonised approaches to operational resilience with respect to third countries.
• Approaches to non-bank financial intermediation.
• Investment research.
• Digital assets.
• Talent optimisation, including diversity and inclusion, professional standards and mobility.
• Global insurance policy leadership.

BAFA looks forward to deepening and broadening our engagement with the U.S.-UK authorities to the
mutual benefit of both economies’ shared prosperity and security.