FCA's Bailey says regulation has not stifled growth

FCA chief executive Andrew Bailey has claimed the regulatory response to the financial crisis has not prevented ecnomic growth or competition, in a conference speech given yesterday in Berlin.

Related topics:  Finance News
Amy Loddington
27th January 2017
andrew bailey fca boe

Bailey said well-targeted regulation was crucial in promoting stability and financial services competition.

Bailey said: 

“Regulation – both prudential and conduct – is in some circles regarded as an obstruction to growth and the competitiveness of finance. I don’t believe this to be the case if it is effective in its public interest objectives.

“The regulatory response to the crisis over the last 10 years has been directed towards creating conditions which support stability in finance, enable competition in the supply of financial services and ensure conditions where users – consumers – can reasonably expect conditions of fairness. These are essential basic conditions not nice-to-haves.”

Bailey also called for higher global regulatory standards in order to avoid friction between national and global regulatory frameworks, adding "by helping to promote international consistency and hence reducing the risks of regulatory arbitrage, global standards can support trade in financial services between jurisdictions."

ABI director of regulation Hugh Savill said of Bailey's remarks:

“Global standards are an important defence against regulatory fragmentation. But the international standards being prepared for the UK insurance industry need a lot more work before they are fit for purpose. They should not be applied to our dynamic and unique British market until they are suitable.”

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