You are here: Home - News -

Sants rules out lighter regulation for ‘good’ firms

by: IFAonline
  • 29/06/2011
  • 0
Financial Services Authority(FSA)chief executive Hector Sants has ruled out rewarding firms with lighter touch regulation for good behaviour under the planned Financial Conduct Authority(FCA).

Speaking at an FSA event in London on the future shape of financial services, Sants batted away calls from the Financial Services Practitioner Panel (FSPP) for rewards for ‘good’ firms alongside punishment for the ‘bad’.

Iain Cornish, chair of the FSPP, told delegates: “As much as there needs to be punishment of the wicked under the FCA there must be recognition of the good.”

He added unless a “more collaborative and less adversarial approach” was adopted by the FCA future regulation would represent “some kind of failure”.

But at a press conference after the event Sants ruled out special treatment for well-run firms.

“I don’t think we should go to the stage where lighter regulation for good behaviour is some kind of reward,” he told journalists.

Firms’ incentive to comply with regulation is to avoid further multi-billon pound bills for mis-selling, Sants said.

“The vast majority of the actions a regulator takes should be aligned with good business practices, and therefore bring benefit to shareholders and firms.

“This alignment also includes firms avoiding significant costs due to mis-selling. The cost to the industry of payment protection insurance mis-selling alone is some £20bn at the last count.”

Sants and Margaret Cole, managing director of the FSA’s conduct business unit, also denied the regulator’s current approach was in confrontation with good firms.




There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Bank of England
BoE deputy Tucker almost voted for rate rise

There are clear signs of a rift within the MPC over interest rates as deputy governor Paul Tucker said he...