The FCA has published a speech ‘Rolling the rock: The cycle of deregulation, crisis and regulation’, given by Charles Randell, Chair of the FCA at the Association for Financial Markets in Europe Annual Conference on 2 messages from Mr Randell’s speech include:
- the cycle of deregulation, crisis and regulation is particularly damaging;
- the most important way to avoid a damaging cycle of deregulation, crisis and regulation is to keep an open mind about the shortcomings of our existing rules;
- the FCA needs to have the humility and the confidence to acknowledge that it does not always know best and that its past decisions have not always been optimal;
- the FCA should try to ensure that the total programme of regulatory change is phased and coordinated in a proportionate way; and
- the FCA does not see the UK’s withdrawal from the European Union as an opportunity to join a race to the bottom in regulatory standards. On the contrary, engagement with policymaking and regulatory colleagues in Europe and across the world should be further strengthened in order to continue to influence global standards of financial regulation.
Mr Randell also highlighted that:
- the FCA is committed to review its Handbook for overall coherence and consistency in the post-Brexit landscape;
- ex-post evaluation of the impact of regulatory changes will give valuable insight to the FCA, giving evidence of where it may need to change its approach; and
- the FCA has committed to publishing an annual statement about perimeter issues.