The rulebook for the financial sector is littered with well-intentioned regulations, each designed to safeguard consumer/investor interests and financial stability. But has this regulatory web inadvertently woven a barrier to investment, stifling economic prosperity?
The U.K.’s Labour Government seems to think so, prioritizing an agenda that encourages greater risk-taking in the name of growth. As the FCA reviews its rulebook, the PRA pledges to take its secondary growth and competitiveness objective seriously. At the same time, the Bank of England defends its record on the economy, all while the U.K. seeks to balance regulation with the pursuit of growth.
Guiding questions to be addressed include:
- Is the U.K. entering a necessary recalibration to achieve growth, or is the stage being set for another financial crisis?
- Could deregulation unlock a wave of innovation in the City and investment across the U.K.?
- Are the regulators incentivized to take the necessary steps? Or do they need more political cover?
- What does the U.K.’s rethink on financial regulation mean for the relationship with the E.U.?