London and New York urged to deepen financial ties for a shared economic future

A coalition of leading financial and professional services organisations from both sides of the Atlantic has called for stronger UK US financial cooperation to unlock economic growth, innovation, and job creation. The British American Finance Alliance (BAFA) says that closer alignment between the world’s two largest financial centres, London and New York, could deliver “real benefits for millions of people.”

The call comes as BAFA publishes its new paper, Finance for Growth: A Shared U.S.–UK Prosperity Agenda, which outlines a roadmap for smarter regulation and deeper market collaboration. The paper urges the newly formed Transatlantic Taskforce for Markets of the Future, jointly backed by the US and UK Treasuries, to accelerate coordination and ensure direct input from industry leaders.

Chris Hayward, Co-Chair of BAFA and Policy Chairman at the City of London Corporation, said:

“This is about more than finance — it’s about jobs, innovation, and prosperity for millions of people. From small businesses seeking investment to consumers looking for better financial products, regulatory alignment between the UK and US will make a real difference.”

BAFA’s report argues that aligned regulation would not only simplify compliance but also stimulate competition, boost cross-border investment, and strengthen both economies’ resilience in global markets.

Kenneth E. Bentsen Jr., Co-Chair of BAFA and President and CEO of the US Securities Industry and Financial Markets Association, added:

“The U.S and UK lead the world in financial services, presenting a unique opportunity to strengthen shared growth and prosperity between our economies. By capitalising on technological innovation and deepening trade and investment ties, we can enhance our capital markets and generate growth across every sector.”

Proposals to boost cooperation

Among BAFA’s key recommendations are:

• Removing barriers to cross-border data flows to promote digital trade
• Coordinating on digital asset regulation to reduce costs and increase investor confidence
• Aligning professional qualifications and mobility to address skills gaps
• Establishing a transparent “scorecard” to track regulatory progress

BAFA also calls for an ongoing mechanism to ensure industry participation in discussions that directly affect the financial sector, from digital trade to market access.

A transatlantic opportunity

The initiative builds on longstanding economic ties between the two countries. Financial services contribute around 7% of GDP in both the UK and US, while US investors hold over $1 trillion in UK equities. More than 170,000 people in Britain are employed by US financial institutions — over half of all American finance jobs in Europe.

Hayward described the new Taskforce as adding “welcome urgency” to turning “ambition into action.”

The paper sets out an optimistic vision: that coordinated transatlantic regulation could make London and New York the twin hubs of a fairer, more dynamic global financial system.

For more insights into the City of London’s global economic partnerships and London’s role in shaping the future of finance, follow EyeOnLondon City for updates and analysis from both sides of the Atlantic.

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