Charles Randell, speaking at AFME’s conference, highlighted the damage that a cycle of deregulation, crisis and regulation can do. He discussed in particular the risks of deregulation, or the choice not to apply regulation to something innovative, thus encouraging business into that area – which often then leads to a scandal and then the introduction of more regulation.
He noted that constant regulatory change can sap the confidence of both the public and industry and can damage competition. He said the best way to avoid a damaging cycle of deregulation, crisis and regulation is to keep an open mind about areas in which existing rules may have shortcomings. He spoke also of the importance of smarter regulation, to produce the outcomes regulators want and the need for regulators to appreciate that firms have finite resources in setting timings for change.
He moved on to discuss the role of evidence backing up policy decisions and the role of the independent view on change and competitiveness versus competition as a regulatory objective.
Finally, he touched on Brexit, saying that FCA views this as a time to redouble its engagement with European and global colleagues.