AFB Chair Stewart Boyd’s Speech to Members – 2026 Mansion House Lunch

Please find below the full transcript of the speech delivered to members by AFB Chair Stewart Boyd at today’s AFB Mansion House Lunch:

“Lord Mayor Locum Tenens, Ladies and Gentlemen, as Chair of the Association of Foreign Banks, it is my great pleasure to welcome you to our annual Mansion House Lunch. This event is always a highlight of our year, and I hope you are enjoying the opportunity to network with fellow AFB members.

We are delighted to be joined by our keynote speaker, Nikhil Rathi, Chief Executive of the Financial Conduct Authority. Nikhil, thank you for being with us today. We look forward to hearing your insights on the regulatory landscape, as well as the vital contribution that international banks make to the UK’s financial system.

Non-UK headquartered banks are integral to London’s position as a global financial centre. They provide liquidity, enable investment and support economic growth. They also attract international talent, invest in infrastructure, and support a wide range of other industries, all helping to reinforce the UK’s global position.

However, the UK is navigating a period of uncertainty, shaped by geopolitical shocks, slower economic growth and increasing competition from other jurisdictions, all of which are actively seeking the benefits that international banks bring when they choose where to invest capital, conduct business, and allocate resources.

In this context, it is more important than ever to ensure the UK remains an attractive destination for international firms. That requires maintaining a proportionate and effective regulatory regime, and fostering an environment that encourages innovation, investment and the adoption of emerging technologies across the financial sector.

Against this backdrop, I would like to reflect on the progress made and the opportunities ahead. The AFB welcomes the efforts of the Government and the regulators to prioritise growth and reduce the regulatory burden. Since the Chancellor set out the Leeds reforms last July, and with the publication of the Growth and Competitiveness Strategy, we have seen positive developments for international banks.

The FCA have released a set of proposals since the publication of the Growth and Competitiveness Strategy. AFB members have been broadly supportive of this direction of travel, including the streamlining of requirements and the commitment to more proportionate regulation. In particular, our members endorse the initial proposals to reform the Senior Managers & Certification Regime.

AFB members further welcome the FCA’s proposals to reduce the transaction reporting burden for firms and the shift towards a more flexible and outcomes-focused approach to client categorisation.

While this progress is encouraging, our members have also highlighted areas where ambition is needed if the UK is to remain competitive. The costs of compliance in the UK are significantly higher than in other jurisdictions. These pressures fall particularly heavily on smaller, non-UK headquartered banks, which often lack the centralised teams to manage continuous regulatory change.

However, some regulatory change can be a driver of short-term costs. Many of our members have also told us that certain regulatory requirements disproportionately impact smaller and medium-sized firms, constraining their growth and reducing competition within the financial services sector.

In order to support competitiveness and deliver on the commitment to growth, it is crucial that regulators prioritise the removal of legacy obligations, pause non-essential new initiatives, and instead, focus on targeted, high-impact reforms.

Despite the challenges, this remains a moment of genuine opportunity for the UK’s international banking community. AFB members stand ready to play their part in shaping a regulatory environment that continues to attract capital, talent and long-term investment. In an era of geopolitical instability, the UK, as a well-regulated, deep and liquid market, is an attractive destination for global capital.

We are encouraged by the recent engagement AFB has had with the FCA, and we support the FCA’s priorities for wholesale markets. We welcome their agenda to focus on preventing financial crime, improve the resilience of firms and markets, enabling firms to understand the risks and opportunities of new technologies, and to continue enhancing the competitiveness and innovation in financial services.

The AFB remains committed to engaging constructively and collaboratively with the regulatory authorities, working towards our shared commitment of financial stability, economic growth, and a thriving, competitive financial sector.

Finally, I would like to thank Giles and the AFB team, members of the Board and all of our members for their continuing support. As a result, AFB will continue to provide a comprehensive programme of events, training and advocacy throughout 2026 and beyond.

I hope you all enjoy your lunch today.

Thank you.”