LONDON (Reuters) – Britain’s regulators should have a formal role after Brexit to keep the financial sector globally competitive and less prone to “gold-plating” international norms, an industry think tank said on Thursday.
The International Regulatory Strategy Group (IRSG) said new thinking and targeted reforms were required after Britain leaves the European Union on Jan. 31. UK regulators will write its own financial rules instead of applying those fashioned by Brussels.
Brexit - Structure - Regulation - Mark - Hoban
“Brexit does change the structure around regulation and we need to reflect that,” Mark Hoban, chair of the IRSG and a former UK financial services minister, told Reuters.
The Financial Conduct Authority (FCA) and the Bank of England are responsible for keeping markets and financial firms safe and stable.
Report - Regulation - Brexit - IRSG - Remit
But in a report on regulation after Brexit, the IRSG called for a secondary remit of ensuring that rules do not put the financial sector at a competitive disadvantage to New York, Frankfurt or other rival centers.
British regulators have resisted such calls, fearing it would increase pressure to ease rules.
Predecessors - Regard - Britain - Role - Reputation
Their predecessors had to “have regard” to Britain’s global financial role and were tarnished by a “light-touch” reputation after the financial crisis a decade ago.
“The use of the word competitiveness is often quite loaded,” said Julian Adams, regulatory and government relations director at insurer M&G, and chair of...
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