FIN.

BoE speaks on “stylish regulation”

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
  • accountability.

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.

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Emma Radmore