Expert: Ralph Jackson, Independent Consultant Facilitator: Sam Shaw, Journalist and Consultant
Headlines:
- Labour’s plans for financial services include levelling up and regulatory changes as well as streamline the regulatory rulebook in line with the Consumer Duty, focus on consumer protection, financial inclusion, and sustainable finance
- Labour's potential plan to review the pensions landscape could significantly impact the industry, given the substantial assets held in pensions and property.
Discussion:
The discussion included Labour's policy proposals, key figures shaping these policies, opinion poll data, and the potential impact on investment decisions and the pensions landscape. The session aimed to help attendees understand Labour's stance and prepare for potential changes in the regulatory and economic environment.
Overview of Labour's policy proposals:
Labour's main policy proposals, including plans for housing construction, green energy investment, financial services regulation, and a review of the pensions landscape were outlined. Labour aims to build at least half a million new jobs in the construction sector and invest significantly in green and renewable energy projects, though conflicts of interest were noted between more construction and a green agenda.
Plans for financial services:
Labour’s intention to level up the financial services sector beyond London and Edinburgh, improve global competitiveness, and boost capital markets.
Key Labour figures and their roles:
The key Labour figures who might shape policies if elected include Rachel Reeves (Shadow Chancellor), Tulip Siddiq (Shadow City Minister), Darren Jones (Shadow Chief Secretary to the Treasury), and Jonathan Reynolds (Shadow Secretary of State for Business and Trade). While some have relevant experience, others lack practical business tenure in the financial services sector.
Opinion polls and electoral scenarios:
Opinion poll data was presented showing Labour leading the Conservatives by a significant margin. Scenarios include Labour forming a government on their own or needing support from other parties like the Liberal Democrats, depending on the final vote share. The importance of scrutinising Labour's plans and engaging with the party to influence their thinking was emphasised.
Economic competence and voter perceptions:
Nationally representative polling data indicates that voters perceive Labour as more economically competent than the Conservatives on issues such as managing the economy, improving public services, and reducing the national debt. These perceptions could change as the election approaches.
Potential impact on investment decisions:
Delegates expressed concerns about clients holding back on investments due to political uncertainty. Educating clients and maintaining globally diversified portfolios were highlighted as strategies to weather potential market storms.
Pensions review and industry impact:
The sensitivity of the pensions sector to potential changes and the need to engage with Labour to influence their thinking were discussed.
Key Takeaways:
- Scrutinise Labour's plans - Focus on policy proposals related to financial services regulation, consumer protection, and the pensions landscape
- Stay informed - Keep up-to-date with the latest developments, opinion polls, and potential regulatory and economic changes during the election period
- Engage with Labour - Interact with Labour Party representatives directly, through media, or via industry bodies to understand and influence their policies
- Consider business impact - Assess the potential impact on your business, clients, and constituency, and adapt accordingly
- Reassure clients - Educate and inform clients about the potential impact of political uncertainty on investment decisions
- Maintain diversified portfolios - Highlight the benefits of globally diversified portfolios, but note that political sentiment, the economy, and investment markets do not always work in synchronicity
- Prepare for regulatory changes - Anticipate potential changes in the regulatory environment, particularly regarding Consumer Duty, financial inclusion, and the pensions sector
- Monitor local election results - Use local election outcomes as an indicator of voter sentiment and potential results in the general election
