On 22 October, both Tracey McDermott, acting Chief Executive at the FCA and Andrew Bailey, Deputy Governor for Prudential Regulation and Chief Executive Officer at the Prudential Regulation Authority, delivered speeches at the City Banquet, Mansion House.

In her speech, Tracey McDermott confirmed that a sustainable approach to regulation, one which breaks the ‘regulate, deregulate, repeat’ cycle, is critical. This new approach will require regulators, firms and individuals alike to play a part in changing the way financial services operate in the long term.

Tracey McDermott highlighted 3 key roles for regulators to play to ensure a sustainable approach to regulation in the future.  These roles are:

  • Referees to make sure that those regulated play by the rules that are set and enforced.
  • Policy makers prepared to review and examine any rules that are not working, and be prepared to change them.
  • Commentators, facilitating debate which reflects on, and analyses, past performance, to ensure that the regulatory landscape ensures clean markets and protects consumers through fostering competition and innovation.

In his speech Andrew Bailey commented on:

  • Progress made on prudential regulation since the financial crisis.
  • Topical issues for the PRA and Financial Services Industry, including the Senior Managers and Certification Regime, structural reform and ring fencing and what the PRA is doing to pursue its secondary objective on competition.