Hector Sants, chief executive of the Financial Services Authority, has called time on the era of \”light-touch\” or \”principles-based\” regulation and said that a new \”outcomes-based\” approach was needed in the wake of a financial crisis that many blame on the previous regime.
Speaking at Oxford University\’s Saïd Business School, Mr Sants said the FSA would no longer wait for problems to occur before acting and would instead intervene \”in a proactive way\”, saying the regulator would hire more staff in the next year, despite the uncertainty over its future.
How excellent. So, instead of devising codes and checking that everyone\’s filling in the forms they\’re going to start understanding the markets they\’re trying to regulate, keep an eye on what people are doing and tell people not to be so damn stupid when they are being.
You know, like the Bank of England did before the FSA was created?
“the regulator would hire more staff”
A bureaucracy’s solution to all problems.
Quite- did the Bank of England haqve more staff than the FSA?
That’s not entirely fair. The concept of “principles-based regulation” was expressly as a contrast to the US system of “rules-based regulation” (SarbOx, etc), which as we know simultaneously drove huge amounts of business to London, created huge amounts of work for pointless-box-ticking consultants, and did *absolutely fuck all* to avert the GFC.
‘Acting in a proactive way’ Wow, that’s a stunning idea for a REGULATOR.
Can we have all the money we have paid you up to now back please?