ABI chairman Keith Satchell has paid tribute to outgoing FSA chief executive John Tiner, saying he has turned the UK regulatory system into “one which is the envy of much of the rest of the world”.
At the ABI conference, he said the FSA’s determination to move to principle-based regulation had given the industry the opportunity to raise its game. But he expressed fears that “events might knock us off course” and said it was vital, for example, that the Financial Ombudsman Service does not become an alternative source of detailed regulation.
Satchell, who is due to step down as chairman shortly, said the Government and Parliament should not be tempted to move into the space that principle-based regulation is opening up.
He called for more support from for the move to principles from consumer groups which, he argued, have too often called for more rules as the answer to every problem.
Satchell also called for more support for the principle approach across the EU and said too many retail directives have added to burdens and should be reviewed.
He said: “This is the moment for the lawmakers in the EU to take a significant step forward by taking a step back.”