A former member of the FSA’s retail enforcement division believes the break-up of the FSA has led to the regulator becoming less effective at lobbying Europe on financial services legislation.
Law firm Pinsent Masons head of the financial services regulatory team Tim Dolan (pictured), who worked at the regulator between 2003 and 2005, believes the restructure of the FSA to the Prudential Regulation Authority and the Financial Conduct Authority is unnecessary and the FSA’s change of focus could have been achieved under the existing regulatory framework.
He adds it has had a knock-on impact on the UK’s interaction with European regulators.
Dolan says: “The energy and effort spent on restructuring the FSA means we have lost sight of more important things like dealing with the European Commission and making sure European directives actually respond to what British financial services firms want.
“The FSA used to be very good with that. It gave a lot of thought to what directives meant and did a lot of work in Europe advocating for sensible interpretation. I do not see that happening at the moment and that is a concern.”
Jacksons Wealth Management managing director Pete Matthew says: “The regulator has taken an eye off Europe but no one wants to pay higher fees so it can hire people to deal with European regulation.”