New FCA chair Charles Randell has said that leave the EU will not lead to a bonfire of regulation, but could provide an opportunity for “right-sized” rules.
Speaking to the Financial Times, Randell says because the role of the FCA should differ between parts of the market, Brexit should not set an overarching move to cutting regualtion.
He says: “I don’t believe we should return to light-touch regulation as an across-the-board principle. There are markets in which our touch should be lighter than in others: there are some wholesale markets where it’s clearly not necessary for us to intervene in the same way we would in a market in which vulnerable consumers are acting.”
However, Randell did sound a word of warning on the EU’s recommendation that cross-border insurance policies requiring rewriting when the UK exits the block should be left to the private sector at “the least good of available solutions.”
Trade bodies like the Association of British Insurers have been campaigning to secure the status of an estimated 36m policies since the Brexit referendum.
Randell also sounded a hint that the FCA may wish to break with certain EU rules once it is not signed up to its directives.
He says: “It’s no secret that some European directives and regulations are not exactly as the UK regulator would have liked to have shaped them if they were the sole holder of the pen, so that’s an area where we may have opportunities to ‘right-size’ regulation without losing important protections”.