The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Quality of Regulatory Authorities More Important Than Structure, BBA Tells Parliamentary Committee

The UK’s new financial regulators will need clear lines of responsibility and the right statutory objectives if they are to meet their intended aims, the BBA has told the joint committee of MPs and Lords scrutinising the new Financial Services Bill.

More important than the new regulatory structure will be clarity in the chain of command so that it is clear who is in charge when problems arise, the BBA told the Lilley Committee on the Financial Services Bill in a written response published today.

The “twin peaks” regulatory structure will see the creation of two new regulators – the Prudential Regulatory Authority and the Financial Conduct Authority. The BBA believes this may well strengthen safeguards in the financial system by engaging more closely with regulated firms and also monitoring risks to the financial system, but this success depends on the new regulators having the right statutory objectives, good quality staff and a coherent focus. Among those objectives should be maintaining the UK’s competitiveness as a global financial centre.

BBA chief executive Angela Knight said: “The banking crisis happened in many countries and with differing regulatory structures. What has become clear that is that the right approach to supervision, risk management and business mix is the top requirement. Structure is down the list.

“We support many of the changes such as creating a separate body – the Financial Policy Committee – to safeguard financial stability. This committee along with the two new regulators need to take into account factors such as economic recovery and international competitiveness. A balance is essential to bring about the right combination of stability, credit available and at the right price, and all the jobs that result from having an international centre here in the UK.”

Related content

WEBINAR

Recorded Webinar: A new way of collaborating with data

Digital transformation in the financial services sector has raised many questions around data, including the cost and volume of reference data required by each financial institution. Firms want to pick and choose the reference data they need to fulfil their requirements. Emerging solutions with the potential to decrease the cost of data and increase flexibility...

BLOG

Unifying Client Data to Accelerate Insights and Deliver Better Experiences

As they switch focus from addressing regulatory imperatives to producing superior client outcomes, buy-side firms have an opportunity to leverage internal and external data sets to deliver unique and timely investment research and analysis in support of rapid innovation and compelling new product offerings. But faced with ongoing business challenges in the form of margin...

EVENT

RegTech Summit Virtual

The RegTech Summit Virtual is a global online event that brings together an exceptional guest speaker line up of RegTech practitioners, regulators, start-ups and solution providers to collaborate and discuss innovative and effective approaches for building a better regulatory environment.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...