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The
Changing Nature of Regulation - Threat or Opportunity? |
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Over
the last decade, the Financial Services industry has changed dramatically, in
terms of both its structure and the regulatory environment in which it
operates. Structurally, the industry has seen extensive globalisation take
place in parallel with both consolidation and convergence of institutional
services, but also an increase in the complexity of the financial products
available in the market. Partly
in response to structural change and partly to harmonize regulation
internationally, national regulators have also undergone extensive change. As
a result, the industry is now substantially more complex and heavily
regulated than it was 10 years ago, with firms faced with having to adapt to
and accommodate a plethora of principles, rules and guidelines conceived in
response to global, international and local market issues. However,
in the UK, the FSA's "Better Regulation Action Plan"
summarises a series of actual and proposed simplifications to, and
anticipates greater flexibility in the regulatory framework. In John Tiner's
words - "A shift towards a more
principles-based approach will take time to implement, as much care will be
needed to ensure that we retain rules that clearly add value in maintaining
efficient orderly and fair markets or helping consumers secure a fair deal.
Ultimately, though, this approach will produce better outcomes for both
consumers and the financial services industry." In response, Lexington is committed to providing clients with practical solutions and services to the two main current regulatory initiatives, Basel II and MiFID. Furthermore, we are offering as a free service, our Regulatory Documentation Portal - specifically designed to ease the burden of spotting, sorting and sifting the vast quantity of published documentation and commentary in the regulatory environment, for information relevant to individual firms. |
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