Bailey dismisses return to light-touch regulation

The regulator published its response to the discussion paper today (April 23) and a further paper seeking detailed views of specific options for change is expected in Autumn 2019.

Mr Bailey’s speech also focused on the future of financial conduct regulation and also highlighted the wider implications of Brexit.

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While emphasising that the FCA took no position on Brexit, he said the extension of Article 50 was welcome but the regulator would continue to prepare for a “full range of scenarios”.

He said: "Wherever we end up, our markets will remain closely linked and our close cooperation with our EU counterparts in order to meet our objectives will continue after exit."

He added: "If you look around the world, you find that wholesale financial markets are more commonly found in countries with common law systems. I don’t think this is an accident or random act. Wholesale markets work better in systems that base their rules and principles more on experience.

"Left to our own devices, I think the UK regulatory system would evolve somewhat differently. It would I think take on board practical experience more rapidly, and it would be based more on principles that emerge from experience in public policy and somewhat less on detailed rules that can tend to become overly set in stone."