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Brexit does not mean ‘a race to the bottom’ for regulation – FCA

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  • 02/10/2018
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Brexit does not mean ‘a race to the bottom’ for regulation – FCA
Britain’s exit from the European Union (EU) should not be viewed as an opportunity for lax regulation, the chair of the Financial Conduct Authority (FCA) said.

 

Charles Randell warned of a continuous circle of deregulation, financial crisis and regulation, which should be avoided.

It comes as some groups call for looser regulation as memories of the financial crisis fade and the UK leaves the EU.

But in a speech at the Association for Financial Markets in Europe (AFME) Annual Conference, Randell said: “The FCA does not see the UK’s withdrawal from the European Union as an opportunity to join a race to the bottom in regulatory standards – quite the contrary.

“We will need to redouble our engagement with our policy making and regulatory colleagues in Europe and across the world, to continue to influence global standards of financial regulation”

Not all deregulation is bad and regulators should regularly review rules are having the desired outcomes, according to Randell.

However, he warned of financial innovation side-stepping tighter rules because of views that ‘this time is different’ when usually it is not different.

He said: “Consumers and businesses need high quality, stable and predictable regulation.

“The cycle of deregulation, crisis and regulation is damaging in so many ways.

“But we must keep an open mind about our existing regulation and be ready to make it better where it is not producing the outcomes we need to produce.

“Confident enough to be open minded and transparent, listening to the unique resource that consumers, businesses and industry professionals in Europe’s largest financial market provide us with.”

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