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Post-crisis regulation levels ‘not sustainable’ says FCA chief

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  • 23/10/2015
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Post-crisis regulation levels ‘not sustainable’ says FCA chief
Tracey McDermott, acting chief executive of the Financial Conduct Authority (FCA), told City officials that the ‘intensity and volume’ of post-crisis financial regulation was not sustainable.

Delivering a speech at Mansion House, London, the regulator said many measures put in place to deal with bad behavior in the sector now risked stifling creativity, innovation and competition.

“We are often told that boards are now spending the majority of their time on regulatory matters. This cannot be in anyone’s interests,” said McDermott.

She added: “So while none of us would want to return to the problems of the past I suspect we will all be in violent agreement that we do not see the experience of recent years as the model for the future.”

The regulator said advancements in technology meant it now had access to ‘deeper wells of evidence’ to review the effectiveness of markets and the policies in place to govern them. She said the FCA must not be afraid to acknowledge when changes it had made to rectify behaviour had not delivered the impact it intended and it should be prepared to reverse the measures if necessary.

McDermott pointed to yesterday’s announcement that the FCA was proposing to get rid of the requirement for firms to issues certain disclosure documents which it had found were ineffective.

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