Financial Policy

  • Financial Policy

    "Finance for growth"

    We believe the financial industry needs to change but in a way that allows it to continue to make a vital contribution to the UK economy. We seek to promote a constructive and vigorous debate to promote the policies that can allow this to happen.

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    About Financial Policy
  • Board Rules

    The solutions proposed and enacted by the government to drive up the standards of corporate governance among UK companies amount to little more than, “a damp squib”. This report recommends that investor representatives should be appointed to board nomination committees and that CEOs should be banned from such bodies.

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    Corporate governance
  • Help to Save

    11 million people are at risk of entering ‘pensioner poverty’ when they retire. With the average pension pot standing at £36,800, a person will need to save six and a half times more to reach the £240,000 required for a decent retirement income. Help to Save calls for government to make it obligatory for people to save for their retirement by removing the opt-out in the existing auto-enrolment scheme, while also increasing individual contributions to pensions as their incomes rise over time.   Read more

    Pensions
  • Privatising the Banks

    Creating a new generation of shareholders

    Privatising the Banks examines four scenarios for the state to sell off RBS and Lloyds, arguing that the best approach will be a mass share distribution coupled with sales to retail and institutional investors. Under the mass share distribution, applying taxpayers will receive shares worth £1,100-£1,650 on a no upfront cost, no risk basis.

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    Privatising the Banks
  • Capital Requirements

    Gold plate or lead weight?

    Bank lending to private companies in the UK has fallen in every single year since the financial crisis, dropping a staggering £57 billion since 2008. Capital Requirements: Gold plate or lead weight? says that the primary reason for this lack of credit is due to the financial regulator’s desire to raise the capital requirements of UK banks.

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    Capital Requirements

Latest Financial Policy In the news

  • 03 August 2014 | HSBC writes to Chancellor to plead for Vickers reform delay

    • Following the chairman of HSBC writing to George Osborne asking to delay the implementation of a ring-fence between retail and investment banking decisions, The Telegraph cites Policy Exchange's Ringfencing UK Banks reportand its warning that ringfencing could lead to the end of free banking.

  • 18 July 2014 | Pensioner Millionaires: UK Has Over a Million Golden Oldies

    • International Business Times cites findings from Policy Exchange's Help to Save report that 11 million people are in danger of entering "pensioner poverty" due to not saving enough for their retirement. The report argues that someone on the average salary of £27,000 would need to save 6.5 times more than they currently do to maintain a comfortable standard of living upon retirement.

Latest Financial Policy Publications

  • 11 April 2014 | Board Rules: Improving corporate governance

    • Board Rules: Improving corporate governance, reveals that the solutions proposed and enacted by the government to drive up the standards of corporate governance among UK companies amount to little more than, “a damp squib”. The report recommends that investor representatives should be appointed to board nomination committees and that CEOs should be banned from such bodies.

  • 22 January 2014 | Help to Save: Defusing the pensions time bomb

    • 11 million people are at risk of entering ‘pensioner poverty’ when they retire. With the average pension pot standing at £36,800 a person will need to save six and a half times more to reach the £240,000 required to generate the government’s recommended retirement income of £16,200. Help to Save calls for government to make it obligatory for people to save for their retirement by removing the opt-out in the existing auto-enrolment scheme while also increasing individual contributions to pensions as their incomes rise over time.

Latest Financial Policy blogs

  • 29 July 2014 | Argentina is flirting with default – and the consequences could be far-reaching

    • Steve Hughes, Deputy Head of Policy Exchange's Economic and Social Policy Unit, considers the potentially far-reaching consequences of a second Argentinian sovereign debt default. Steve argues that, as a result of the dispute, the precedent of enforcing equal treatment of creditors as interpreted by the US legal system may now have been set, which may also mean that the IMF has to take a different approach to debt restructuring in the future.

  • 10 April 2014 | The boardroom debate needs to move beyond gender

    • Emily Redding, Financial Policy Research Fellow at Policy Exchange, outlines the main arguments in her report, Board Rules: Improving Corporate Governance. Emily argues that the focus on making boards more gender representative has skewed the debate away from how we can get more people with a diversity of appropriate skills and experience onto boards.

Latest Financial Policy Event

  • 05 June 2014 | "The Summit" with Ed Conway and Jesse Norman MP

    • Policy Exchange is delighted to host Sky News's Ed Conway's to discuss his new book The Summit with Jesse Norman MP. This book is the definitive story of the 1944 Bretton Woods Summit and the lessons for today's global economic recovery. Drawing on a wealth of unpublished accounts, diaries and oral histories, Conway describes the conference in stunning colour and clarity, bringing to life the characters, events and economics.

  • 11 March 2014 | Help to Save: Defusing the pensions time bomb

    • Having enough money to live on in retirement should be something that everyone desires, yet in the UK we simply do not save enough to even get close. With the proportion of the population over 65 likely to reach nearly a quarter by 2050, such undersaving is a timebomb for the public finances. In most cases, the Government’s auto-enrolment scheme falls short of helping people to save enough to meet the recommended retirement income of around £16,000.