A new post-Brexit financial sector
The Finance Innovation Lab is asking UK regulators to develop a more explicit, rounded and substantive concept of what social purpose means for financial services in a post-Brexit UK.
In its Regulatory Compass report, the Lab, a charity supporting socially beneficial financial start-ups, says it wants regulators to
• adopt a new set of metrics against which to measure their success
• support the governance, ownership and business models ‘that can best align the financial system with its social purpose’
• embed an understanding of social purpose into their approach to encouraging innovation and regulating new markets
• hold firms to account for the human outcomes of technological developments.
The Lab says there’s a need to dig deeper to understand the ultimate purpose of finance, in particular how it creates, deploys and facilitates the movement of money.
“The financial system should be judged not only on how efficient it is at turning money into more money, but also on the social, economic and environmental impacts of that money,” states the report.
The Finance Innovation Lab was founded by World Wide Fund for Nature and the Institute of Chartered Accountants in England and Wales in 2009 with a view to changing the financial system so it serves people and planet.
Image: Finance Innovation Lab