A new report reveals that the UK government is planning to change visa rules in favor of fast-growing firms after Brexit.
Chancellor Rishi Sunak launched an Independent FinTech Strategic Review last year to change some UK visa rules and recommend special visas for skilled workers.
The review concentrates on priority areas for regulators, policymakers, and the industry at large to support the UK fintech sector.
The new visa rule change is headed by Ron Kalifa OBE, former chief executive officer of Worldpay, and has received widespread support from the UK parliament.
Prioritizing fintech growth after Brexit
The government takes the fintech industry as a major focus area to prioritize industrial growth after Brexit, Kalifa noted. He added that several of Europe’s fintech industry picked London as the ideal location of their “unicorns’ companies worth a combined total of £1 billion.
Such companies like TransferWise, Monzo, and Revolut were launched in the British capital.
But these companies are rethinking their future in London after the UK’s withdrawal from the EU, especially in the area of European talent acquisition by startups. Since talents from Europe take a huge portion of the workforce, these startups fear Brexit will limit their chance of getting these talents. As a result, the UK government has seen the need to relax its visa rules for workers in the fintech industry to encourage them to work with the UK fintech firms.
New visa rule creates room for industry growth
Presently, the fintech sector employs about 60,000 people in the UK and contributes about £7 billion to the UK economy, according to the UK government’s estimate. And there is a potential for more economic gains since the industry is still growing.
As a result, the government wants to provide a conducive environment in the sector by relaxing its rules on the visa application to aid the companies to maintain a strong workforce.
The review is proposing a change in the listing regime to ensure that the London stock market is more attractive to new founders. It will also change the technical visa requirements for the recruitment of top talents for some of the most dynamic companies in the UK.
The review will reduce minimum staking requirements
Based on the report about the review, the update will allow a dual-class stock structure for firms listed on “premium” exchanges. The review may also cut down the minimum stake requirements of the company from 25 percent to 10 percent.
It will consider affecting five different areas, which include international appeal, policy, national connectivity, investment, as well as skills and talents.