What has been learned since the 2005 CPS Review?
A REPORT BY THE CPS (CENTRE FOR POLICY STUDIES) REVIEW TEAM
The Financial Services Authority, which came into formal existence in 2001, is one of the most powerful, and one of the least accountable, institutions created in the UK since the war.
Its lack of accountability has nurtured a sense of disengagement and growing disillusionment within the financial services industry.
The industry also feels that the FSA is vulnerable to political direction and influence. The FSA is seen as being unable to defend the industry it is intended to support against political or public criticism. This has created a sense of insecurity about future regulation. The ability of the industry to plan and to innovate is severely undermined.
The industry fears that the FSA is an increasingly defensive and risk-averse organisation. This has contributed to a culture of prescriptive and increasingly complex regulation.
Such a culture is damaging to all in the industry, but most of all to the small business sector. Innovation is at risk of dwindling, competitiveness falling and consumer choice declining.
The characteristics needed to succeed in the global capital markets include the following: expert, responsive, lateral thinking, proactive, unbureaucratic, fast-on-the-feet, decisive, cost-conscious, imaginative, outward-facing and open. The industry expects its regulator to mirror these characteristics.
The industry’s expectations are not being met.
Click here to read the report; is this a case of déjà vu? Post your comments in the forum.



