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Tag: Simon Kirby

  • Simon Kirby – 2016 Speech at the UK Financial Services Brexit Summit

    Simon Kirby – 2016 Speech at the UK Financial Services Brexit Summit

    The speech made by Simon Kirby, the then Economic Secretary to the Treasury, on 11 October 2016.

    Good Morning everyone.

    Thank you for inviting me to speak here today.

    And I want to congratulate City and Financial Global, the Corporation of London and the CityUK, and other organisers and sponsors, for holding such a timely event.

    Because it doesn’t matter what industry you’re working in. There’s one question every single business sector is wrestling with, and that’s what our exit from the European Union will mean in practice.

    And I know there are some concerns among the financial services sector and I’ve listened carefully to Charles’ 5 points [Charles Bowman – City of London].

    People are asking whether the UK will be able to maintain its reputation as a world-leader in financial services once we’ve left the EU? Whether we’ll still be able to keep and attract the very best talent? Whether this industry will be consulted about what is the very best deal for Britain and what it would look like?

    And the reason I wanted to come here today, is to make very clear, that the answer to all three of these important questions, is a resounding yes.

    So let me kick off with that first question – can the UK still be one of the best financial centres, anywhere in the world, even if we’re outside the EU?

    Well let me say this is an absolute priority for the government. This sector is hugely important to the British economy. It is the world’s largest exporter of financial services, insurance and pensions exporting £63.7 billion.

    And across the country, over 2 million people have jobs in this and related industries – and it really is across the country, with the vast majority of these jobs actually outside of London. And it is important to every single part of our great country.

    But what I want to remind you – as we will remind the world – is that being in the EU is simply not the biggest strength we have to offer. Standing in this building makes that point very clear to me.

    What we can offer in the UK, is all the services the industry needs – in one place.

    And we’ve got a lot of strings to our bow.

    We’ve got our hugely respected legal system.

    We have world-leading business and support services.

    We have a multilingual workforce. And we have a great time zone for doing business across the globe.

    We have some of the best universities in the world.

    And we have a financial system that we’ve spent the last 6 years making more and more resilient – as illustrated for example, by the capital requirements for the largest banks which are now 10 times higher than before the crisis.

    And another great skill we have here in this country, is that we don’t stand still.

    We’ve been steadily developing our capacity in this industry across the whole UK.

    So the success of the square mile is now being seen in the regions across the country, which we’re working to promote as financial centres of excellence in their own right inextricably linked to London and important across the whole world.

    And we keep moving towards the future in terms of new innovation.

    Look at the exciting use of technology in this sector!

    We should all be proud of the fact that London was recently declared the very best place in the world to set up and run a FinTech firm – a sector that last year generated almost £7 billion in the UK.

    So we have a lot to offer and a positive story to tell.

    We have a positive story to tell and we have all the talents to keep offering the financial products and expertise that our global customers require.

    And while we are rewriting our relationship with the EU, we will also be working hard to retain our reputation for British excellence in this industry.

    Now I know that for many of you a key part of retaining that reputation, is retaining the talent that we have.

    So let me turn to the second question many of you are asking, which is about our ability to keep and attract the best people to the UK’s financial services industry.

    And there are two parts to that question.

    Firstly, concerning the rights of EU nationals already here within the industry. We fully expect that the legal rights of EU nationals already in the UK will be properly protected. Because they make a huge contribution to our country, as well as our financial services industry. And we’re confident that we’ll be able to reach an agreement protecting the rights of EU nationals here, as well as our citizens in Europe.

    But the second part of the question is about making sure we can attract the right skills and the people to our financial services industry.

    The Prime Minister has made it clear the Britain we will build after Brexit is going to be a global Britain. So it’s the time now to be bold, the time to build a new confident role for ourselves on the world stage. And that means continuing to be a place which can attract the very best workers coming from abroad, while at the same time making sure we keep developing our home-grown talent of the future. It’s a balance between the two.

    And in response to the third question – about how much the views of the financial services industry will be taken into account as we lay the groundwork for a successful Brexit.

    Let me be very clear, ladies and gentlemen. We want to secure the very best possible deal for this country – across our industries, and across the UK. 2.2 million people, £67 billion in tax income. We want the very best deal for financial services. But we cannot do this alone.

    It’s always important that government and industry talk to each other.

    But now it is more important than ever so we can meet the challenges and take advantages of the opportunities, yes opportunities, ahead effectively.

    So we need to hear your perspectives from the financial services sector.

    We will listen to you. We will work hard to understand your issues. And we will weigh this up as we consider our position before opening up negotiations with the EU. And the process has already started. You’ve told us, for example, about the importance of market access for this industry.

    We know that if the UK is to have a passporting regime, that we will need a regulatory regime that is comparable and well-harmonised with the countries into which we are passporting.

    And I think we are in a strong place to achieve this with Europe: starting a new relationship at a point when we have shared the same rules for so long and had huge economic integration.

    You’ve also told us you’re worried about market disruption and the risks to financial stability when we leave the EU.

    And so we will push for a solution that means an orderly transition – that neither disrupts how financial services are delivered, nor importantly drives up costs.

    So my message to you today is to keep talking to us, to keep sharing your views, and to keep working with government in this spirit of constructive collaboration.

    To conclude, we know the path ahead won’t always be easy.

    There’s a lot of work ahead for all of us.

    And we know that we must expect some turbulence- some bumps in the road- as we negotiate our exit from the EU – with article 50, the mechanism to withdraw, set to be triggered by the end of March at the latest next year. But we’ve worked hard to strengthen our economy, and we approach this period from a position of strength. So we are confident that we can weather any storm that comes our way.

    And as I started with three questions, let me end with three promises to you here today.

    First, that we are going to keep on doing what it takes to see the UK’s financial services industry remain a world leader.

    Second, that we are going to keep on making this a country which is competitive and open for business.

    And thirdly, that the government will keep fighting to get the best possible deal for British business, and make Brexit a success.

  • Simon Kirby – 2016 Speech on the Pensions Dashboard

    Simon Kirby – 2016 Speech on the Pensions Dashboard

    The speech made by Simon Kirby, the then Economic Secretary to the Treasury, at Aviva Digital Garage in London on 12 September 2016.

    Spirit of innovation

    Thanks Andrew (Brem – Aviva Chief Digital Officer) for that introduction, and even more so for hosting us in such a perfect example of Shoreditch cool!

    I like to think, as a Brighton MP, that I’m used to seeing some pretty trendy establishments, but this ‘Digital Garage’ is a whole new level.

    And as someone who has started various businesses myself, I have to say I’m very envious of all the cutting edge start-ups which are getting to make the most of this space to develop their ideas.

    So an enormous well done to Aviva for backing them.

    Because I’ve long been a huge believer that it’s our creativity, our passion for innovation, that is one of the main factors in this country’s success in business. It’s our new ideas, our new ways of thinking, our new products that really help create new jobs and get our economy growing.

    Success Post-Referendum

    Now I know some of you have concerns about how the vote to leave the EU might affect our businesses.

    And, of course, our access to the single market has been important, for the financial sector in particular.

    But it’s not the only foundation of our prosperity.

    It’s not our only route to success.

    We have a lot to be positive about.

    Our economy is fundamentally strong.

    We have sensible regulation.

    We have talent and skills in abundance.

    And we have creativity and cutting edge technology.

    So in the Treasury, just as across government, we’ve spent the summer looking at the consequences, and of course opportunities, associated with our exit.

    And I’ll be playing my own part in making Brexit a success for the UK’s vital financial services industry – which gives jobs to over 1 million people across the country – not to mention 10% of tax revenues.

    Informed choices through technology and information

    And in the meantime, the regular work of government is continuing at pace.

    And it’s great to be here today to talk about the pensions dashboard – which I think is a hugely important step forward.

    Because financial decisions are complicated at the best of times.

    They probably always will be – these are decisions that really matter to people’s lives.

    But what we can do to help is to make sure that people have the right information, in the right format, at the right time.

    Technology has unlocked so many more possibilities for doing that.

    Just look at how revolutionary things like mobile banking and comparison sites have already been.

    It’s time for pensions to catch up.

    Because for most people, it’s their pension which is their largest financial asset.

    And if we have better information available, we can make much more effective decisions. From choosing how much we save, to what products we use to do so.

    And what the dashboard can do, is unlock a huge amount of information to inform the choices people make.

    How different would people’s engagement with pensions be if you could review your pension balances as part of your online banking?

    Or if you could change how you save into a pension at the click of a button?

    Or if personalised pension forecasts could be run on a mobile app?

    Design of the dashboard

    So that’s why we need a pensions dashboard to unleash this kind of potential.

    And for it to really be effective, I think there are three main principles that must underpin its whole design.

    Firstly, it will need to be open.

    No single dashboard can meet the needs of millions of people who all have very different individual circumstances.

    There is definitely no government website that could do that either.

    There is no monopoly of wisdom.

    The dashboard needs to be an infrastructure of open standards – like a common language and system for finding, collating, and sharing pension information.

    And it should be open to a range of companies who can meet basic standards of security and data protection – including banks and fintechs, not just pension providers.

    They should be able to access its information to deliver the products or advice their customers ask for.

    Secondly, the dashboard needs to be flexible.

    It is unrealistic to expect every provider to be ready to contribute the same data to the dashboard at the same time.

    It is probably impossible to present all the different types of pensions in exactly the same way.

    And who knows how technology or other changes might transform pensions in the future?

    The infrastructure therefore needs to be built in such a way that it can adapt and expand over time

    It cannot be a single, monolithic IT platform set in stone forever.

    Finally, the dashboard needs to be reliable.

    Because if we want to encourage people to save more, then they need to be able to trust in pensions. That starts with people being able to access basic information, across all their pension pots, without having to pay to do so.

    There’s nothing wrong with charging for useful services – be it advice, savings plans, consolidation services or other possibilities that don’t yet exist.

    But we need to get the free provision of the basic information right, and make sure it’s consistent across different types of pensions.

    The State Pension will be a part of that.

    And I’m keen to see the whole industry work together to set the minimum standards for how data is shared.

    We want that process to happen through the excellent voluntary collaboration we’ve seen to date.

    But if there are difficulties getting everyone on board, then we’ll certainly look at legislation or regulation instead.

    So I would encourage everyone to start on this as soon as possible.

    Making it happen

    So how do we get this flexible, and reliable dashboard off the ground?

    Because we’ve said very clearly that we want this up and running and ready for consumers to use by 2019.

    Well, I’m very pleased to be able to announce today that eleven organisations have made a fantastic new commitment to make the dashboard a reality.

    Aviva, Aon, B&CE, HSBC, LV, Nest, Now:Pensions, Royal London, Standard Life, Willis Towers Watson, and Zurich have agreed to work together to build a first working prototype of the dashboard by March 2017.

    And particular thanks must also go to the Association of British Insurers for agreeing to project manage the whole process. Together, these organisations will be leading the way forward in making the dashboard a reality.

    They’ll be looking at how to develop open, common standards.

    How to get the right governance structures.

    And how to overcome some of the tricky technical challenges.

    So I want to congratulate all these companies on taking on the challenge of setting up this first pilot.

    And I have no doubt that they will reap the rewards of their efforts.

    Innovation is a race and rewards those who press ahead.

    So if you are a pension provider who wants to participate in the pilot, you still have time to sign up to the same commitments as these companies and help develop this dashboard.

    Conclusion

    So this is an important milestone, and one which in my new role as the Economic Secretary to the Treasury I’m excited to get behind.

    In the Treasury, we’ll be supporting the pilot all the way.

    Not only by seeking views across organisations about the best ways to go about it.

    But by providing top-level guidance and independent challenge.

    So I’m confident this project will be a success.

    Because we’re already seeing great collaboration across organisations to make it happen.

    And we know how much creativity and innovation this sector has to offer.

    So I’m confident that when it comes to 2019, people in this country will have a much better service when it comes to making the right decisions about their pensions.

    And together we’ll be able to move on from the discussions we’re having today, to get on with designing, building and making the dashboard a reality.

    So I wish everyone involved every success in doing so.

    Thank you.

  • Simon Kirby – 2016 Comments on the Pensions Dashboard

    Simon Kirby – 2016 Comments on the Pensions Dashboard

    The comments made by Simon Kirby, the then Economic Secretary to the Treasury, on 11 September 2016.

    Pensions and savings decisions are some of the most important a person will make during their lifetime. The government is determined to make sure people can access the information they need to plan effectively for their future.

    Technology, like mobile phone apps, has made day to day banking easier than it’s ever been and it is time for pensions to catch up. Think of a future where you can compare your pension pots with the touch of a button.

    The Pensions Dashboard will unlock a huge amount of information that will help people make the best choices for them and I am delighted that eleven of the largest pension providers have agreed to work together to build a working prototype by March 2017.