The UK risks sleepwalking into the next financial crisis unless there is a vast cultural overhaul among its financial services regulators, according to a think tank report.
Produced by Cass Business School and New City Agenda, the study calls on the Financial Conduct Authority (FCA), Prudential Regulation Authority (PRA) and Bank of England (BoE) to improve transparency, reduce group thinking and stop watering down regulations.
The criticisms levelled at the trio range from watering down the
much-needed change that came after the financial crisis, to promoting a
box-ticking approach to regulation. Commenting on the report, advisory board member to the New City Agenda, Archbishop of Canterbury Justin Welby, said regulators must practise what they preach to restore the public’s trust in the sector.
“The report is a compilation of all the post-crisis generic complaints about regulation...