BBA chairman Agius, warns Cameron on G20 reform

Writing to Cameron in his capacity as the BBA chairman, while also being the chairman of Barclays, Bank, Sky News has reported that he advised Cameron that while progress was made on financial reforms sine the banking crisis, it required a fresh push.

He also warned Cameron on Britain’s own financial regulatory system.

“The challenge now is to finalise and deliver the reform agenda,” Agius was reported as writing. “This means setting a clear timeline over which changes will be agreed and a process for resolving inconsistent implementation by G20 countries – particularly on issues such as prudential standards, levies and remuneration.”

“The advantage generated by the significant progress which has been made to date on agreeing common standards must not be allowed to slip from our grasp via inconsistent application.”

Agius’s warnings underline a point that been particular cause for concern among major UK banks (including Barclays). Britain’s implementation of new rules bank regulation rules have left London-based institutions at a competitive disadvantage against overseas rivals.

With regards to the UK’s own financial regulation system, Agius stressed “stress the importance of the Government and UK authorities engaging fully with the European Union to make the case for the adoption of reforms which are consistent with the G20 agenda.

“We must also ensure that the reforms proposed to the UK’s supervisory structure do not inadvertently impede the ability of the UK to influence what is decided by the EU during the transition period.”

Recent proposals to scrap the Financial Services Authority (FSA) were met by concerns at the disruption this would cause ever since the plans were announced months ago. It is speculated that Agius’ reiteration of the point (speaking for the BBA) means that the Treasury has not been sufficiently reassuring on the subject.