British MPs Urge Government to Address FinTech Brexit Concerns

Some members of Parliament in United Kingdom (UK) have issued a warning that unless the UK government acts quickly in the aftermath of the Brexit to protect the interests of the Fintech industry, it could leave the industry open to significant risks.

The MPs who belong to the Business Innovation and Skills Committee recently released a report on the Fintech sector. In the report, the MPs have said that the government must take immediate steps to stop the loss of investor confidence in the Fintech industry and stop companies from relocating to Europe. They also highlighted that measures must be taken immediately to ensure that UK’s businesses can still access the EU’s Digital Single Market (DSM).

The committee’s report has stated that the vote to leave has affected UK’s standing in the industry and will now force the fintech industry to follow Europe’s lead instead of setting the agenda.

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In a statement, the MPs said

The decision to leave the European Union risks undermining the United Kingdom’s dominance in this policy area. We could have led on the Digital Single Market, but instead we will be having to follow. The government must address this situation, to stop investor confidence further draining away, with firms relocating into other countries in Europe to take advantage of the Digital Single Market.

The committee also called for cohesive action between departments and better inter-departmental communication regarding the digital strategy to ensure that there is no loss of growth in the sector.

The recent revamp of the Cabinet by the new British Prime Minister Theresa May has however led to uncertainty as to who is in charge. Under the previous administration, the digital strategy was handled by the cabinet office, the erstwhile department for business, innovation and skills (BIS), and the department for culture, media and sport (DCMS). There is no clarity as of now as to whether this arrangement would continue.

The other key recommendations of the committee include publishing the digital strategy for the country which includes an assessment of the impact of Brexit and the status of EU’s migrant citizens in UK, greater recognition for the gaming industry and a better measurement of the UK’s digital economy contribution which is possible if better collaboration takes place with the UK’s Office of National Statistics.

The committee has emphasized that all departments must join together for achieving the digital agenda for UK and that the digital minister should join the cabinet. Committee chair Iain Wright said that the committee wants the digital strategy to be published at the earliest as it has now been delayed for over six months.

Charlie Harrison

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