The UK: ahead of the competition

By Andrew Bailey, a solicitor at Watson, Farley and Williams LLP

London recently overtook New York as the world’s largest financial centre, with the UK ranking as the second largest economy in Europe after Germany.

For many years now international firms have been attracted to the UK’s shores by the potential to share in the success of its cutting-edge industries.

The credibility and performance of the UK financial markets, the extensive infrastructure of people and services to support investment and a no-nonsense, practical approach to regulation help bring firms of all sizes to the UK.

Optimising competition

The Office of Fair Trading (OFT), the UK’s main competition regulator, is instrumental in ensuring the UK’s competitive landscape optimises opportunities for investors and consumers alike.

The UK has always strived to ensure a fair marketplace for investors.

How this works in practice is to a fair extent left in the hands of the OFT, which endeavours to ensure equality in a marketplace that remains fair and competitive.

Reviewing the UK’s regime

In June 2007, consultancy KPMG published a peer review of competition policy in the UK.

KPMG’s review was commissioned in order to rate the UK’s competition regime against those of other economies across the globe.

Contributors to the review included expert commentators from the legal profession and academia, and representatives from relevant authoritative bodies.

In total, over 300 experts were surveyed.

Topping the league

The survey measured and evaluated the extent to which the OFT’s activities and effectiveness are developing relative to its peers.

The overall scores of the survey were then collated to produce a final competition regime performance index (CRPI).

The UK regime was ranked higher than almost all other countries, falling behind only the USA and Germany.

And in comparison to the previous year it has narrowed the gap with the US and is now almost level with Germany.

Assessed by international panel

This is not just the UK giving itself a pat on the back.

The spread of experts were taken from a total of 15 different countries.

The results of the review praise the advances made in UK competition law, citing in particular the implementation of the UK Enterprise Act 2002 and introduction of the Competition Appeal Tribunal.

Efficiency for complex issues

The review observes the “truly excellent analytical capability” of UK competition regulators.

It cites the number of complex mergers that the Competition Commission has reviewed in recent years and the speed and efficiency with which competition issues have been addressed.

Robust regime

All investors crave a level and fair playing field.

The report notes that unlike some regulatory institutions the UK competition regime has managed to stand boldly and resolutely against the pressures of political spin and corporate giants.

In reality it simply highlights what thousands of investing firms, controlling billions of pounds of investment, already know – when it comes to a fair and open marketplace, the UK is ahead of the competition.