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Markets and Securities Services |
United Kingdom
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Regulatory change
The global financial crisis was the engine
of a vast amount of regulatory change.
Regulation was perceived to have failed
and wave after wave of changes to conduct
(behavioural) and prudential regulation have
broken across the industry. The hope, it now
seems, was that these changes would prevent
a future crisis. However, in an industry that
can only manage, rather than eliminate,
risk, it remains to be seen whether that
hope can be realised.
Along with conduct and prudential changes,
many countries have engaged in structural
regulatory change. For example, in the US,
SHOULD ENFORCEMENT BE
SEPARATED FROM THE UK’S
FINANCIAL REGULATORS?
In July 2016, the Treasury Select Committee (TSC) published a review
of the various reports into the collapse of HBOS plc (HBOS). One of its
recommendations was to revisit the question of regulatory enforcement,
specifically to consider whether the enforcement function should sit
within the regulator or outside it as a separate body. Below, we take
a look at what this approach means.