Kalifa Review

Recommendation 1 (Policy and Regulation): Deliver a digital finance package that creates a new regulatory framework for emerging technology.

Recommendation 1 (International Attractiveness and Competitiveness): Fintech International Action Plan 2.0. Increase the practical and commercial support available to international fintech; build on fintech strengths prioritising alignment with Trade Agreements and scoping partnerships for Developing Markets; develop a fintech branding strategy; and create a Ministerial International Fintech Taskforce.

Recommendation 2 (International Attractiveness and Competitiveness): Drive International Collaboration through the Centre for Finance, Innovation and Technology (CFIT), which will bring together the UK's existing capabilities, offer practical support and create new digital collaboration opportunities.

Recommendation 3 (International Attractiveness and Competitiveness): Launch an International Fintech Credential Portfolio (FCP) to support international credibility and increase ease of doing business. It is recommended that HM Treasury appoints a private sector body to design, build, launch and administer the International FCP.

Recommendation 1 (National Connectivity): Nurture the high growth potential of the top 10 fintech clusters, with the proven foundational capabilities to optimise their particular areas of excellence. Each prioritised cluster to produce a three-year strategy to support their continued growth, foster specialist capabilities, and enhance national connectivity.

Recommendation 2 (National Connectivity): Drive national coordination strategy through CFIT to ensure future fintech competitiveness and growth across the UK connectivity. This will deliver national coordination, with supporting data and technology infrastructure, to ensure future fintech competitiveness and growth across the UK.

Recommendation 3 (National Connectivity): Accelerate the development and growth of fintech cluster excellence to take advantage of domestic opportunities and compete on global stage, through increasing research and development investment in the fintech sector.

Recommendation 2 (Policy and Regulation): Implement a "scalebox" that supports firms focussing on innovative technology to grow. Support fintech businesses and innovation through a "scalebox" arrangement under which firms focussing on innovative technology receive additional support (particularly in their growth phase and/or in relation to the Priority Fintech Areas).

Recommendation 3 (Policy and Regulation): Secure fintech's position as an integral part of UK trade policy. The UK should make fintech an integral part of its trade policy and should continue to establish Fintech Bridges with other countries.

Recommendation 1 (Skills and Talent): Retrain and upskill adults to meet the needs of UK fintech by ensuring access to short courses from high-quality education providers at low cost. This should be delivered by an independent Steering Committee.

Recommendation 2 (Skills and Talent): Create a new visa Stream to enhance access to international talent for fintech scaleups. The UK should deliver flexibility, cost efficiency and accessibility for fintech scaleups to upend global competitor markets, by introducing a bespoke 'Fintech Scaleup Stream' within existing routes such as Global Talent, and by enhancing existing routes, within the UK's 2021 immigration architecture.

Recommendation 3 (Skills and Talent): Build a pipeline of fintech talent by supporting fintech scaleups to offer embedded work placements to Further Education and Higher Education students and Kickstarters.

Recommendation 1 (Investment): R&D, Tax Credits and EIS. Expand R&D Tax Credits to accommodate the cost of financial data sets which is critical to developing and scaling fintechs. Expand the EIS, SEIS and VCT tax reliefs to be applicable to regulated fintechs.

Recommendation 2 (Investment): Fintech Growth Fund. The creation of a Fintech Growth Fund of sufficient scale to act as the catalyst in developing a world leading fintech ecosystem. This would be a market-led, specialist £1bn Fintech Growth Fund funded by holders of domestic institutional capital.

Recommendation 3 (Investment): Fintech Public Listings. Reduce free float requirements on the Premium segment from 25% to 10%, for a limited time post-IPO, or put in place a minimum threshold. Enhanced governance rights through a golden share or dual class share structures. Maintain the relaxation of pre-emption rights. Create a global family of Fintech Indices to improve understanding and enhance visibility of the sector.