Rules overhaul could release £22bn for UK exporters, ICC tells City watchdog
The UK arm of the world's largest business organisation said in an open letter to Britain's financial regulator that there is an 'urgent need' for reform of the rules governing trade finance, the financial instruments that facilitate global trade.
In a letter to Financial Conduct Authority chief Nikhil Rathi, Chris Southworth, the ICC UK's secretary-general, said the trade finance system suffers from a 'bureaucratic and inefficient' regulatory structure.
He told Rathi small and medium-sized exporters are beset by 'laborious compliance checks and over-burdensome capital requirements'.
It said the rules have negated the gains resulting from the Electronic Trade Documents Act (ETDA) 2023, which grants digital trade documents the same legal status as their physical counterparts.
According to the ICC, the ETDA has reduced average trade transaction times from two to three months to just one hour, and lowered transaction costs by up to 80 per cent.
Call for change: Regulations should be overhauled to release £22billion in trade finance and cut costs for small and medium-sized firms, the International Chamber of Commerce has urged
This has been compounded by a 'culture of fear and risk aversion' as a consequence of enforcement actions and penalties levied on financial institutions over a decade, according to Southworth.
He has called on regulators to enact the Basel III reforms - a series of measures to enhance the banking system's defences against economic shocks - more quickly so their benefits can be realised within the current Parliament.
HM Treasury and the Prudential Regulation Authority have delayed the application of Basel III until the beginning of 2027. The reforms are due to be fully implemented by January 2030.
Southworth said the timeframe fails to reflect what businesses are 'doing in the real world and lacks the ambition and urgency required to meet the scale of the economic challenge facing the UK'.
He called for 'more proportionate, lighter touch' regulations for trade finance, especially 'know your customer' (KYC) processes, which financial firms use to check their customers' identity.
The ICC also wants the capital requirement threshold lifted for trading SMEs to help shrink the £22billion trade finance gap.
Despite the UK underpinning 60 per cent of global trade finance, Southworth said that countries like India, the US, and the United Arab Emirates have 'more agile and responsive regulatory frameworks and digital infrastructure'.
The ICC said that making reforms was 'not only a growth opportunity but also an opportunity for the UK to be the global hub for modern, digital trade finance. Saying no to reform or continuing to delay it is no longer an option'.
An FCA spokesperson told This is Money that it was 'testing' the idea of relaxing KYC rules on small transactions with the UK Government, having sent a letter to the Prime Minister last December suggesting such an idea.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
an hour ago
- Telegraph
Divorcee forced to pay half of ex-husband's trans surgery in legal first
A divorcee has been forced by a judge to pay half for her ex-husband's trans surgery. The mother argued that it was unfair that she had to stump up £80,000 for the procedure when the decision to transition had led to the breakdown of her marriage. But in what is believed to be the first case of its kind, the judge said that the surgery was a 'need', not a 'whim', and therefore it was 'reasonable' for the cost to be met out of their joint funds. The husband, 58, had said that the argument was 'like saying someone who had cancer should not have the surgery' during the hearing at Brighton Family Court. The couple, who cannot be named for legal reasons, met while working in the financial sector in London in the late 1990s and married in 2002, when the husband was living as a man. They had a 'very international lifestyle living in several countries in different continents and purchasing properties in various countries' and accumulating £3 million in joint assets. They have two children who were privately educated and are now at university. In 2022 the husband informed his wife he was 'intending to 'transition to a woman' and 'commenced hormone therapy at that stage', the judge said. Two months later the wife, 60, issued divorce proceedings. The husband had surgery in 2024 after they had been separated for almost two years and the £160,000 bill was paid out of their joint cash. During their separation, the husband, who has retrained as a massage therapist and Reiki practitioner, claimed he could not afford to pay the court-ordered maintenance to his wife and children but splashed £14,000 on an Amex card in one month 'mainly on clothing, nails, jewellery and restaurants', got £13,000 worth of tattoos in six months and racked up a £1,000 Milan restaurant bill. Bitter legal dispute Whether they should split the surgery cost was at the centre of the bitter legal dispute which cost the couple almost £1 million in legal fees. Judge Stuart Farquhar said: 'It is not surprising that this issue has generated significant emotions from both of the parties. 'It is the applicant's position that it is as a result of the respondent's decision to transition to a woman and undergo the surgery that the marriage has broken down and that in the words of counsel's opening note 'it cannot be right that the applicant should have to pay half the costs from her share of the matrimonial funds'.' But the husband, who says his wife always knew he was trans, said that it should be 'treated in the way of any other medical costs which would ordinarily be met from the joint assets'. In his ruling the judge noted that the husband had provided medical evidence of gender dysphoria which had caused 'significant anxiety, depression and distress' and for which 'the vaginoplasty surgery was considered the next appropriate step'. In her evidence the wife 'was adamant that she was not aware that the respondent wished to transition until the end of the marriage' and said it was 'devastating and a big surprise' when she discovered her husband wanted to take cross-sex hormones. She was 'deeply shocked' when her husband 'stated that she intended to live her new life as a lesbian woman' and that is when she began divorce proceedings. She argued that it was the husband's choice to have the surgery but it should be paid out of his personal assets, saying it was unfair for her to foot half the bill as the 'decision to transition that caused the end of the marriage'. The husband responded: 'You marry a trans person. You live with a trans person. You benefit from a trans person. They are suicidal and you support them.' He argued that 'it would be like saying someone who had cancer should not have the surgery and that accordingly the cost of that surgery should be met from joint funds'. 'Genuine psychological need' The judge agreed with the wife's legal team that the husband had 'shown no understanding whatsoever that her decision to transition to a woman has had an impact on anyone else, and particularly' the ex-wife. Judge Farquhar said that while 'there is no doubt that this has been a hugely difficult and emotionally draining experience' for the trans woman, 'the lack of empathy' for the ex-wife 'is striking'. However, he said that could not be considered when dividing up the assets and the court 'will not consider the reasons that a marriage broke down within financial remedy proceedings'. He said he was satisfied the 'surgery was meeting a genuine and deep-felt medical/psychological need'. 'This cannot be, and has not been, said to have been carried out as a whim when all of the effort and time that the respondent has invested in the process is considered,' the judge noted. Therefore, it was 'reasonable' for the money to be spent 'out of joint resources', he ruled.
The Independent
an hour ago
- The Independent
How Angela Rayner has become the most influential figure in Starmer's government
As Keir Starmer gathered his top ministers for a special away day in Chequers for a team-building reset on Friday, one figure arrived in a much more powerful position than she was in just two weeks ago. It is now widely recognised by Labour MPs, across the different wings of the party, that deputy prime minister Angela Rayner 's influence in this government is greater than almost anybody else. Certainly more than the wounded chancellor Rachel Reeves, who has been beset by economic woes, and even more than health secretary Wes Streeting who, like Rayner, has been tipped as a future contender for the leadership. She was, though, completely unprepared for the shot fired by the Unite union, after its general secretary announced it had suspended her membership for failing to resolve the Birmingham refuse collectors dispute. But while a trade union that looks set to peel off and back Jeremy Corbyn's new party gave her a headache, Ms Rayner nevertheless is enjoying a surge in influence – for now. Welfare rebellion The biggest reason for her rise is the result of the welfare rebellion just over a week ago. As one party whip put it: 'There's nobody more powerful in the government than Angela at the moment. 'She was the one who brokered the deal with Labour rebels, she was the one who talked people off the ledge from voting against the government.' As another ally pointed out that she did not even want the disability cuts and had already sent a leaked memo to Ms Reeves suggesting wealth taxes instead of austerity. Now, after last Wednesday's PMQs, it seems like the government has no option but to raise taxes. But the turnaround for Ms Rayner actually started with her holdout in the spending review, where she got a £39bn for housing and more than expected for local government. A spot of union bother Some may see the recent decision by Unite the union to suspend her membership (even though she left the union in April) as a problem. But behind the scenes it has confused people on the left and other unions, who believe Ms Rayner has turned Starmer's government leftward on disability benefits and steering through the bill on workers' rights. As a TUC source noted: 'The main metric we are judging this government by is the workers' rights legislation and that is on course.' Unite took action because of her position on the Birmingham bins strike. But an ally of Ms Rayner said: 'It's wild! They know full well that Angela cannot directly intervene in the way that they say, and to attack one of the few remaining cabinet members who is standing up for workers rights and real labour values is simply mad.' However, it remains to be seen if the escalating clash with Unite will halt Ms Rayner's rise. A rival court to Downing Street How the tide can turn. Just over a month ago, there was talk about Ms Rayner being demoted and losing the housing part of her portfolio. Now there is speculation in Westminster that the deputy prime minister could soon have her own official office, with its own staff and comms team. There is some scepticism, especially over what it would mean for Sir Keir himself and his chief of staff Morgan McSweeney. As one ally of Ms Rayner noted: 'Morgan will hate the idea and do everything he can to stop it. An Office of the Deputy Prime Minister (ODPM) would create a rival court, an alternative centre of government.' The last person to have an ODPM was John Prescott under Tony Blair, but unlike Ms Rayner, Prescott was never seen as a candidate to replace Sir Tony. All about the leadership There is still a lot of fevered speculation about whether Sir Keir can survive as prime minister. The image of his chancellor in tears while he failed to guarantee her future this month became the image of a government spiralling out of control after just a month. There are many waiting to see the results of the elections in Scotland, Wales and English councils next May to decide whether to launch a putsch. If he is forced out, Ms Rayner is now the clear favourite to take over, despite her protestations that she does not want the job. Beware the 'Rayner's rise' trap While Ms Rayner is on top at the moment, there is some speculation that the spending review with Ms Reeves has laid a trap for her much more problematic than the issues with Unite. In getting her cash for local government and housing it appears that the deputy prime minister has signed up to council tax rises of 5 per cent. At the housing and local government select committee hearing this week in the Commons she denied that the increase was 'baked in', but MPs from her own party and the opposition were not convinced at all. The Independent has been told that already the term 'Rayner's rise' is being used for hefty council tax increases not seen since the Blair era two decades ago. Back in the Blair government it was Prescott and his Office of the Deputy PM which took the brunt of the anger over rising bills - it will be the same for Ms Rayner. Among her allies there is genuine concern that Ms Rayner's opponents inside and outside the party are 'preparing to weaponise' it as an issue when council tax bills land at the end of the year. There are fears that it will not take much to turn the public against her.
Daily Mail
an hour ago
- Daily Mail
What it's REALLY like cruising with billionaires on the world's most exclusive ship, where apartments cost up to £12 million
Money talks – we all know that. But even if you have £12 million or so in the kitty and want to buy a three bedroom apartment (please don't call it a cabin) at the stern of the ship, there's no guarantee you'll be successful. None whatsoever. 'We're not dazzled by wealth and our residents cherish privacy,' says Fernando Arroyo, general manager of The World, the only fully residential cruise ship on the high seas. 'If someone like the Beckhams came along and wanted to buy we would politely say no. They just wouldn't be the right fit. It would become a circus.'
