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Archie Kane warns against a parental FSA

Association of British Insurers chairman Archie Kane has called for the calibre of FSA supervisors to improve and warned that the relationship between the regulator and firms is in danger of becoming a parental rather than adult one.

Speaking at the ABI biennial conference in London today, Kane said: “We have to improve the relationship between the regulator and those they regulate. There are going to be changes in the ways firms are supervised and that is rightly so.

“But I sincerely hope that the nature and culture of the relationship between the regulator and firms can develop into one of maturity. I know the FSA is under pressure to show its teeth but I believe this relationship should be an adult one.

“There is a real danger in the current environment of supervision turning into a parent child relationship resulting in individual supervisors and individual firms feeling unable to make their own judgements based on experience and knowledge.

He added: “This is a difficult subject and will require real skill and judgement to get it right. It will require a higher calibre of supervisors at the FSA who understand the businesses they are supervising and work together with firms to achieve a positive outcome.”

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  1. Julian Stevens 9th June 2009 at 2:21 pm

    Archie Kane warns against a parental FSA
    He should be warning against a pernicious and blatantly biased FSA that costs an absolute fortune and over regulates IFA’s (the least risky sector of the financial services community) but under-regulates the banks (the highest risk sector of the financial services community). Will a new Conservative administration be doing anything about these gross iniquities imposed daily on the IFA?

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