• Call for Government, regulators and finance industry to come together to ensure the UK can adapt to maintain its status as a leading global financial centre
• Need for UK to offer an ambitious, 21st century trade deal to underpin our service-based economy
• Financial services industry must recognise its obligation to act in the interests of wider society
• Sector needs to renew its commitment to British business in order to rebuild trust
• Winning fight against financial crime will be a key element of future success

Speaking this evening at the inaugural UK Finance Annual Dinner at Mansion House in London, Stephen Jones, Chief Executive of UK Finance said:

Alderman Sir Roger Gifford, Mr Chairman, My Lords, Mr Chancellor, Ministers, Aldermen, Sheriffs, Ladies and Gentlemen.

I would like to add my welcome to you this evening and express my excitement at the opportunity of working for you, and with you, as UK Finance's inaugural CEO. In particular, may I thank our hosts, the City of London Corporation, our partners EY for their support, and especially the Chancellor of the Exchequer for his remarks this evening.

When I joined J Henry Schroder Wagg & Co Limited in 1988 I did not imagine that a large part of my senior career would involve navigating the banking crisis and the profound social and political challenge it posed to our industry.

And one of the main reasons I wanted to do this job is that I believe very strongly that the way we responded to this challenge mattered. It will define our license to operate for the foreseeable future.

I believe that together with policymakers and regulators we have risen to that challenge. Not always perfectly. Not always consistently. But we have shown this industry has the power to renew itself. To own our own mistakes.

The reality is that after 10 years we have stronger banks, more competition, better resolution planning and comprehensive protections for consumers.

No less importantly, we have robust frameworks of personal accountability across senior managers, material risk takers and customer-facing staff.

This is right for a vital economic engine which provides £2.5 trillion of debt finance to retail, SME and larger corporate customers in the UK.

It employs two million people in the UK, two thirds outside London and the South East, paying taxes annually in the UK of over £70bn - or two thirds of the annual running cost of the NHS. With this importance comes the duty to manage our industry soundly.

But our complex financial ecosystem faces major challenges.

The current renegotiation of the relationship between the UK and EU economies has profound ramifications for retail and commercial banking customers in the UK and in the EU.

I don't want to dwell in detail on the current Brexit negotiation. Suffice to say, I am optimistic that the need for a proper transition period that is essential to underpin cross-border financing, risk management and trade is well understood by our Government.

I believe it is understood by our EU partners. The EU recognises the UK's critical contribution to domestic EU capital raising, financing and risk management.

Complex natural habitats renew - they do not die overnight when faced with change.

This means coming together to find attractive and responsible ways to allow the financial services sector to continue to compete. We need constantly to re-enforce our credentials as the best equipped centre from which to conduct global financial services.

And in this context I want to highlight some of the elements I believe that will be essential for these credentials to be sustained and strengthened.

Firstly, we need to secure a renewed mandate for the UK to continue as one of the leading global financial centres.

Government, regulators, and our member firms need to work together to maintain the UK as the strongest financial centre in Europe and within Europe's individual markets.

A core component required to renew the UK's mandate is and must remain strong regulation. This is not a competitive disadvantage, but a strength.

Strong regulation attracts international trade and business. We do not desire or need a bonfire of regulations - a frequent concern of our European partners that we must allay.

Confidence in safety and soundness, in high standards of conduct, is a strength. Nobody knowingly flies a plane operated by a light touch ground crew.

To secure a renewed mandate for the UK as a leading global financial centre we must also underpin the UK as an exporter of financial services.

We will need a genuinely ambitious 21st century trade deal that reflects the needs of a modern, service-based economy. The UK has a unique opportunity to be the trailblazer in this space - and there is a national need that we do it well.

UK Finance is assisting Government with the development of cross-border services agreement offering a detailed framework as we seek to position the UK as a global free trade player.

Expert commercial diplomacy designed to sell our strengths abroad, open opportunities for export and improve the conditions for UK-based exporters, will be a critical pillar underpinning the attractiveness of the UK as an international financial centre.

Trade based on mutual recognition, regulatory alignment and supervisory cooperation must also be underpinned by confidence in the regulatory approach of the other party.

This means that an EU firm providing services cross-border to a UK customer should be afforded regulatory treatment that does not unnecessarily disadvantage it vis-à-vis a UK-based firm - of any national identity - and vice versa.

And this includes how we require EU firms currently passporting into the UK to reset their regulatory relationships with us. We must not revert to an insular and defensive mentality in how we require the many European financial services firms operating in the UK safely for decades via passports to re-apply for authorisation and change their business models unless we are prepared to see the same treatment for UK-based firms seeking to maintain their activities in Europe.

A good services agreement requires regulatory diplomacy and mutual trust between regulators to build a truly global financial services market.

And for a renewed mandate to be secured for the UK as a leading global financial centre, we need to recognise our obligation to wider society not to ignore or underserve or mistreat the vulnerable.

We have a collective responsibility to act proactively to ensure no one is left behind by the system.

And we must address situations where the market is not working well for consumers, for example where consumers use credit products inappropriately resulting in problematic debt.

We cannot expect the interests of the UK as a global financial centre to be acknowledged and prioritised by Government and regulators, or welcomed by wider society, if we appear unwilling or unable to put right the wrongs of the past.

I believe that for our mandate as a global financial centre to be renewed, to be supported, we must also offer a renewed commitment to British business. We have to find ways of rebuilding the trust that British business has in our sector.

The most troubling statistic in British banking today is that only 13 per cent of SMEs trust their bank to act in their best interests.

We clearly have much to do and I am determined that UK Finance will be a catalyst in this space.

Earlier this summer the Banking Futures group published two reports. The first is on improving access to SME finance.

It identifies recommendations for banks and for Government to improve the support given to SMEs - a vital part of the UK economy, as well as our future.

The second report encourages banks and institutional investors to focus more on the drivers of long-term value.

The intention here is to recognise that there are factors other than the quarterly profit and loss figures that determine the long-term sustainability of an investment.

These include the many initiatives taking place across the industry - whether based on culture, customer satisfaction, the adoption of voluntary standards or the attitude to longer-term risks on the horizon.

These metrics deliver value in the long term, as well as increasing confidence in the quality and sustainability of earnings. And they improve trust.

UK Finance has a huge opportunity to demonstrate visible and forward-looking leadership in this area. We are working on a series of collaborative initiatives across the industry to do just this.

HM Treasury's Patient Capital Review will play a key role in considering the availability of long-term finance to growing, innovative firms looking to scale up.

It will consider the role of market practice and market norms in facilitating long-term financial investment. This is clearly vital work.

But the supply of finance isn't the whole answer. Yes, growing firms need access to finance, but we need more than that to foster a high growth business culture.

Around half of SMEs are ?Permanent non-borrowers? - using no external finance and showing no inclination to do so. We need to foster talent, leadership skills and infrastructure.

UK Finance will be doing its part to address this, including improving SME access to advice, and encouraging reporting and sharing of best practice around the sector.

And apart from securing a renewed mandate for the UK to operate as a major global financial centre, there are a number of other elements required to re-enforce our credentials as the best equipped financial centre in the world.

Working across the private and public sectors, we must be outstanding in our fight against economic crime.

Bob discussed earlier the work the industry is undertaking in this space and the efforts we are making to defend our systems and customers to the highest global standards.

Our success in this battle - for that is what it is - is an absolute necessity and will be a critical 21^st century competitive advantage for the UK as the best location from which to conduct financial services business.

Bob has highlighted the importance of promoting the digital economy and embracing new technologies, both as a country and as an industry.

And there are other important areas where Government policy will have a vital impact on the competitiveness of the industry here and our ability to retain and attract the best international players.

We must maintain flexibility in the jobs market, and balance the electoral mandate for greater control on immigration with the ability to access the best talent throughout the world, irrespective of nationality.

We must continue to address our chronic housing problems, and how financial services, the Government and the house building sector can work together to support the needs of our families in this regard.

And we must ensure that our personal and corporate taxation levels do not become uncompetitive.

Yes, this is a period of uncertainty. But this shouldn't make us short-termist. We should think now about the long-term opportunities on the horizon: for Brexit, for trade, for our customers.

Yes, the financial crisis brought the sector to the brink.

But our sector has survived and even thrived. And with your help I am confident we can make the UK the most transparent and safest place from which to conduct financial services in the world.

Thank you once again for coming tonight and to our partner, EY.

Ends

For further information on UK Finance please contact:
Nicola Hussey
Tel: 020 3934 1040 / 07803 201087
Nicola.hussey@ukfinance.org.uk

Notes to Editor

Follow @UKFTweets on the evening for live updates.

About UK Finance

UK Finance is a new trade association which was formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation brings together activities previously carried out by the Asset Based Finance Association, the British Bankers? Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.