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Compliance burden is &#39causing market to stagnate&#39

Leading lawyers are warn-ing that the UK financial services market is stagnating under increasing compliance burdens and senior management fears over the future of regulation.

London law firm Osb-orne Clarke says com-panies are putting flotation plans on hold amid prospects of the new regulatory system following N2 being scrapped in 2005 when the planned European integrated fin-ancial services market is set to be introduced.

It says if an integrated market is established, there are concerns in the industry of “canning what has been put in place and starting afresh” with regulation.

Osborne Clark financial services lawyer Adrian Yeandle is warning that fears over the FSA&#39s new rules governing market abuses, such as on money laundering, are encouraging firms to steer clear of making too many changes.

The firm says the new regulatory environment is generating new fears such as concern stemming from the FSA&#39s policy to wait for something to go wrong before taking action.

Yeandle said: “There are a number of instances of firms not floating because they are worried they may fall foul of rules surround-ing market abuse. Some are steering clear over concern about not knowing what the future holds.”

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Gerald Gregory

Lives: On the edge of the Peak District in Derbyshire.Born: Buckinghamshire.Career: Graduated from Nottingham University in 1976 with a degree in economics and joined Lloyds and Scottish Financial to go on the road selling financial products. Took on a sales role at General Guarantee before moving to Girobank, later joining its Treasury department.Joined Britannia Building […]

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