Former business secretary Lord Peter Mandelson has hit out at the repeated threat of additional financial regulation, saying it could destabilise the financial system.
Speaking at the National Association of Pension Funds conference in Liverpool, Mandelson said the financial system must be made to be productive.
He said: “Perpetual debate about acceptable safeguards, about what further inquiries are needed into the past, and repeated threats of regulatory change in the future run the risk of simply de-stabilising the financial sector without bringing about additional beneficial change within it.
“We will not secure economic growth without banks and capital markets capable of funding it. So let’s digest and fully implement the current reforms and then make stability the priority to ensure finance gets back on its feet.”
But the former Labour MP said the FSA should have been “more intrusive” in its regulatory approach before the financial crisis.
He said: “The interrelationships between the FSA, the Treasury and the Bank of England were untested, and when they did come to be tested it was by the most almighty, unprecedented shock imaginable.