Enterprise adviser to the prime minister Lord David Young says he is “fed up” with the FSA and will review the impact of its regulations on small businesses.
Delivering the Conservative policy forum annual lecture at the Conservative conference in Birmingham last night, Young said financial regulation could be scaled down in the same way as health and safety laws.
In 2010, prime minister David Cameron tasked Young with reducing the number of health and safety laws. He went on to produce a report, Common Sense, Common Safety.
Responding to a question from the audience, the former cabinet minister said there is a specific issue with financial services regulation impacting on small businesses.
He said: “Unfortunately we need a certain amount of regulation because people will abuse their situation. When sophisticated individuals are dealing with unsophisticated investors we need rules. But I am sorry the current regulation is bad and we will have a look at it.
“Health and safety laws were difficult but I had a look at it two years ago and it is far less difficult today. I appreciate what you are saying, I am a bit fed up with the FSA and will have a look at it.”
Young said he has encountered financial regulation when he set up a firm, saying: “I was responsible for creating the Securities and Futures Authority, a regulator that existed before the FSA, and when I left Government I set up a business and found I had to be registered under it. It wanted me to take an exam and eventually we compromised and I became an eminent person and I did not take the exam.”