The Attorney General's recent consultation paper on fraud put the two issues of law and the City on the same agenda.

As someone whose City of London Corporation role involves working 24 hours a day to ensure the future of the financial 'Square Mile', I am very aware of the vital role played in the City's trillion-dollar success by the law, its processes and all the people who work in it. Bluntly put, the UK's lead in financial services would not exist without the foundation of a pragmatic commercial law that is envied (and imitated) around the world.

But the City's pre-eminent position and the continuing jobs and prosperity that it provides are only underwritten by tomorrow's success. And it is in seeking to preserve that future success that the Attorney General's proposals on fraud are to be welcomed. Fraud is not something the City (or anyone else) can be complacent about; a great deal of the prosperity of London, the southeast, the rest of the UK and indeed Europe, depends on the City's reputation, a reputation that fraud can tarnish.

The Fraud Review is now out for consultation until 27 October, when final decisions on how to proceed in tackling this problem will be made. Among the wide-ranging recommendations made by Lord Goldsmith is that serious fraud cases and associated proceedings be dealt with in a more co-ordinated way by establishing a Financial Court jurisdiction.

The review describes this as a 'virtual' court sitting in existing courtrooms, using "a specialist cadre of judges who have experience of and familiarity with financial issues and well-developed case management skills". The plan sees judges not – as now – drawn just from the Crown Court (with a High Court judge taking an occasional fraud case), but also from among High Court judges. It would see judges from the Commercial Court, its Mercantile judges and possibly even Chancery Division sitting in the new court.

These judges, with experience of commercial and financial cases, are the envy of the world. They are incredibly sharp, they keep in touch with the commercial world, they know how business works; and they have integrity.

A strong, independent judiciary is one of the unsung assets of the City of London. We have to build on that strength, and a new Financial Court – as proposed in the Fraud Review – using specialist judges to deal with often-complex fraud trials could do just that.

The debate on the modernisation of the Commercial Court and on the provision of facilities that would both match its reputation and enable it to continue to compete internationally, recognised the central issue of providing a world-class facility to house a world-class judiciary. Resources are now also crucial in connection with the functioning of the proposed Financial Court.

It is not for me or the City to comment on the specific part of the Attorney General's proposal that concerns the judiciary. But I can underline just how well-regarded worldwide the commercial law of London is.

Historically, the law has always been associated with the success of the City. In this global world, of which the City of London is the undisputed international financial hub, issues of law, mediation, speedy dispute resolution, commercial codes, maritime and insurance law are either barriers to prosperity or opportunities to usher in further progress.

Around the world, English courts, together with English law, are acknowledged as one of the foremost choices of jurisdiction for international contracts. This is a choice driven by the quality of the legal services available, the freedom afforded by common law for parties to agree the terms of the contract, and by speedy dispute resolution with its range of options.

The common law, and within it contract law, has enabled City law firms to flourish and be part of the lifeblood of the City. What is more, this expertise and experience is a key ingredient in our international legal reputation. Our legal system is one of the reasons why business chooses London.

Europe has long felt the benefits of the City's success. A report commissioned by the City of London last year calculated that if London's financial cluster did not exist, EU GDP would be immediately reduced by €33bn (£22.4bn). That is why the Square Mile is so important to the long-term future of EU economy, and why ensuring that the Fraud Review results in a crackdown on fraudsters will pay dividends far beyond the M25.

Michael Snyder is chairman of the City of London's policy and resources committee.