A government-sponsored review of financial technology firms chaired by former Worldpay CEO Ron Kalifa has set out recommendations for government and private sector action to keep the UK competitive, after Brexit left fintechs in Britain adrift from the European Union single market.
The main recommendations are:
* Set up a Digital Economy Taskforce that aligns fintech work done by regulators and government departments;
* Deliver a digital finance package that creates a new regulatory framework for emerging technology;
* Create a 1 billion pound Fintech Growth Fund with institutional investor money to halve the sector’s 2 billion pound funding gap;
* Accelerate growth in Britain’s 25 fintech “clusters”;
* Set up a Centre for Finance, Innovation and Technology (CFIT) to drive a national and international strategy;
* Set up a “scalebox” to support firms that are growing rapidly;
* Create a new visa “stream” to make it easier for fintechs to hire talent from across the world;
* Expand tax credits for research and development;
* Play catchup with New York, Paris, Frankfurt and New York by making it easier for fintechs to list by cutting the minimum number of shares they must make publicly available, and allowing “dual class” shares that give stronger rights to founders;
* Create a suite of fintech indices based on listings of UK fintech to raise the sector’s visibility;
* Review of progress within a year.