Tracey McDermott, the acting Chief Executive of the Financial Conduct Authority has assured City firms earlier this week that the regulations come into force since the financial crisis in 2007/2008 would not be substantially added to over the coming years.
McDermott has recently said: “we are often told that boards are now spending the majority of their time on regulatory matters. This cannot be in anyone’s interests. If that continues indefinitely, we will crowd out the creativity, innovation and competition which should present the opportunities for growth in the future” .
Companies have had to adjust to the new regulations, with some boosting their pay. Others have had the opposite effect, as McDermott has said: “The benefits an intervention is expected to deliver may not be realised or there may be unintended consequences” .
There were also cautions that the rules concerned were too strict and may deter new firms from entering the market. Although the FCA still intends to challenge firms’ and push for high standards.
Osborne told a committee of MPs that McDermott’s predecessor, Martin Wheatley “did an excellent job in creating the FCA but we took the view that he wasn’t the right person to carry on with the next phase of the FCA’s development” .
The FCA is looking to adopt a less intense approach from now on, to avoid past problems from resurfacing.