Fidelity International’s European chief executive Robert Higginbotham has warned the FSA’s “overly bureaucratic and intrusive” regulation is damaging UK competitiveness.
His comments were made as part of a new CBI report in which business leaders call on the Government to address a series of barriers to investment in the UK.
In Making the UK the best place to invest, published today, the CBI warns that without action investment and jobs will be lost to other countries.
It suggests a number of measures including removing the 50p tax rate as soon as public finances allow, setting a long term objective of cutting corporation tax to 18 per cent and creating a planning and regulatory system that encourages growth.
Higginbotham says: “Business opportunities and jobs are moving abroad and the Government must look carefully at why this is the case. A key issue is the overly bureaucratic and intrusive regulation by the FSA.
“This may be appropriate for a failed bank, but it is wholly inappropriate and disproportionate for an agency business such as ours. The new executive of the FCA must pay attention to international competitiveness. This is not an invitation for weak regulation but for carefully considered and appropriate regulation.”
CBI director general John Cridland says: “With competition for international capital so fierce, the Government must play up our strengths and remove the stumbling blocks to investment. Time isn’t on our side and we have less than five years to turn things around.”