Regulation  

Act now to put us back on top of the world – Pettigrew

Act now to put us back on top of the world – Pettigrew

The regulator needs to get it right if the UK’s financial services industry is to succeed, Jim Pettigrew has said.

Speaking at Mansion House last week in the presence of the Lord Mayor Alan Yarrow, the president of the Institute of Chartered Accountants of Scotland outlined five areas for politicians and business leaders to look at, to help create the right environment and ensure the future success of the City.

“At a time of such change in the regulation of our financial institutions, we need the right combination of checks and balances and the freedom to take the considered entrepreneurial risks which create wealth, generate more taxes for our public services and lead to more investment and more jobs,” he said.

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He likened the City to a watch – making it run smoothly needed many intricate parts to come together in perfect harmony.

“Over the next five years we must act together in a way that we have not done before,” he added.

FCA view

Earlier this month, FCA chief executive Martin Wheatley said it was imperative for regulators to keep in step with the economic and social cycles, which also required positive engagement from industry.

He said: “The wrong approach, as we are now only too familiar with, is for firms to unpick principles in the pursuit of profit with no apparent social utility. The right approach is to pursue sustainable growth on the basis of positive outcomes for clients and consumers.

“Regulation, as we have now learned, has a profoundly important role to play in that equation.”

Adviser View

David Gibson, financial adviser at Londonderry, Northern Ireland-based Gibson Financial Planning, said: “There does need to be a balance, but the FCA seems to be doing a good job. There is a fine line between giving business the freedom to operate and preventing them from doing something silly.”