FSI Fears ‘Knee-Jerk' Financial Services Regulation
The Chairman of Financial Services Ireland (an Ireland-based forum body), William Slattery, has warned against a rigid, overly bureaucratic, centralised approach to EU financial regulation policy: ‘Rather than seeking to establish a centralised and expensive regulatory super-structure, the EU should focus its energies on achieving an effective but low-cost regulatory approach based on mutual recognition between Member States.’ The comments came at a recent conference in Dublin, where Slattery also stressed the importance of avoiding ‘knee-jerk’ solutions to corporate scandals. ‘Regulation, that often has a long shelf life, should not be developed ‘on the hoof’. The business environment is becoming increasingly over-regulated. In the European public debate, more regulation is too often regarded as a panacea for all sorts of public policy issues. There needs to be a counterweight to this approach with far greater recognition of the costs of regulation, including direct costs, compliance costs and costs associated with reduced market efficiency,’ said Slattery.