FSA hauled over coals for over-regulation
The Financial Services Authority has been attacked by a panel of City executives, saying the increased complexity of regulation could hamper new business innovation.
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In its annual report, the Financial Services Practitioner Panel – responsible for monitoring the effectiveness of the FSA – said there was a danger that too much regulation would stifle competition and innovation.
The panel’s chairman Donald Brydon said anxiety was growing amongst regulated firms about the number of regulatory reviews and their cost, according to The Times
He said: ‘All concerned need to remain vigilant that in developing regulation, a point of no return is to be avoided where innovation, flexibility and competition are threatened by too much cost and complexity.’
Although he believes the FSA is aware of this danger, he stressed the importance of maintaining a balance so the trust, between the UK regulator and the companies it controls, remains.