The financial services industry should be a “part of the solution” following the Covid-19 pandemic, CityUK CEO, Miles Celic, has said, highlighting the pensions industry in particular as an “unparalleled national asset”.

Speaking at the Pensions and Lifetime Savings Association (PLSA) Investment Conference 2021, Celic emphasised the importance of the pensions industry in the broader economy, describing it as a “vital enabler”.

“One of the critical things that doesn’t always get the attention it deserves in the media discourse is that the pensions and lifetime savings industry is one of the cornerstones of a financial and professional services ecosystem here in the UK, that is an unparalleled national asset,” he stated.

“Moreover it is also a vital enabler for economic activity across every part of the economy and every part of the country.”

He also stated that the financial services industry more broadly is a "engine for national economic growth" and an enabler for both the wider economy and society.

"By providing the means for people to grow and invest, the means for people to realise their ambitions and aspirations, such as buying a home, protecting their assets, saving for retirement, this is how we drive success. We do good, by doing good" he added.

Indeed, Celic argued that the industry’s response to the pandemic has already improved the public perception of the financial services sector, clarifying that whilst this has taken a long time, a shift is happening.

“If you look at the public polling of this there is more of an appreciation, more of an understanding of what the industry does, and actually, the way the industry was able to step up and support businesses during Covid was a large part of that,” he stated.

“We were, 10 years ago, part of the problem. This time round we’ve been part of the solution, and I think that’s really helped in terms of shifting how people look at the industry, but it’s an everyday battle.”

Looking ahead, however, he stressed that the recovery must be got “right”, warning that a number of businesses will be facing a debt burden that may end up being unsustainable, and that solutions are needed to avoid insolvencies of what would otherwise be viable businesses.

He stated: "The regulatory agenda should fundamentally change its focus in the short term, with an emphasis, a greater emphasis on identifying measures that are concentrated on investment for the recovery.

"We at CityUK are working with the regulators to look at ways to remove barriers to businesses access to longer-term equity-like funding that can support economic growth and financial stability, and I know that there are many organisations that are looking at that as well.

"In the medium to longer term, the UK has a once-in-a-lifetime opportunity to enhance this ecosystem and ensure that it is suitable for the UK specific market and also as attractive as possible in terms of our international engagement with other markets."

In addition to this, Celic argued that the environmental, social and governance (ESG) agenda is “very definitely having its moment in the sun”, with the pandemic acting as a catalyst ahead of Cop26.

However, he clarified that this needs to be viewed as a process, rather than a “single point in time”.

“This will take a period of time to address," he emphasised, "it will take a period of time to build the products that people are looking at, and to fine tune them and hone them and develop them over time."

Alongside this, he also highlighted the integration of ESG and socially responsible investing as "critical" in attracting the right people to the industry as employees.

"The pressure is coming not just from society, but the employees. The younger employees in particular who are joining our companies, and want to see purpose in what we do and a positive impact in how we operate", he explained.

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