UK shadow minister criticizes financial regulators over market decline

Andrew Griffith, the UK's shadow business secretary, has sharply criticized financial regulators, accusing them of being out of touch and failing to address the decline of London's capital markets. He argued that watchdogs like the Financial Conduct Authority (FCA) are too focused on "regulatory mutual admiration fests" rather than the real problems facing the City.

Griffith highlighted that the London Stock Exchange has been significantly impacted by takeover deals, with the value of bids in the first half of the year reportedly 27 times that of new listings. He also criticized the 0.5% stamp duty on UK share trading, contrasting it with competitors that do not levy such a tax. While acknowledging Chancellor Rachel Reeves's stamp duty holiday for newly listed shares, Griffith deemed it insufficient.

He urged the UK to "fall back in love with risk," suggesting that a cautious and risk-averse approach from both investors and regulators has weakened London's global appeal. Griffith also pointed to high energy prices and heavy regulation as factors making the UK less attractive for businesses. Furthermore, he criticized the lack of agency for British workers in their pension investments and the prevalence of "left-leaning" rules like executive pay caps and strict ESG targets, which he branded as "epic self harm" that restricts growth.