Sam Woods has spoken on how UK financial regulation might look post-Brexit. He looked at the 6 principles of an effective regulatory framework and how the SMCR model of legislation can deliver them.
- robust prudential standards;
- responsible openness based on international collaboration and standards;
- proportionality and sensitivity to business models, and promoting competition;
- dynamism and responsiveness;
- consistency; and
The SMCR model, he said, delivers a statutory framework, with considerable discretion for regulators on the detail, as, in fact, did the ring-fencing regime. Given the ability to do so, this approach may work better than the EU approach of more detailed specification in the law.