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Industry figures call for better regulation - 14/05/2010
Creating better and more efficient financial regulation should be a priority of the new government, according to panellists speaking at the Credit Today Summit.
The panellists, speaking at the "Future of Credit" debate held at the Grosvenor House Hotel, London, argued that the current system of regulation contained too many overlapping agendas, resulting in uncertainty and a lack of clarity. Current financial regulation across the credit industry is divided between the Financial Services Authority (FSA), the Office of Fair Trading (OFT) and the Ministry of Justice (MOJ).
Mark Thundercliffe, chief credit manager at HSBC, said: "All the regulators currently have different views.
"We do need to think through responsible regulation. What we would like to see is clarity on how regulation will look in future."
Mark Huggins, director of AA Financial Services, warned that access to credit issues meant that more regulation was likely.
He said: "We are going to see an increasing polarisation of the market between those who can access credit and those who can’t. I think that will prompt the government to regulate further."
Leo Mckee, chief executive officer of Brighthouse, also voiced concern at the way current regulation was implemented by legislators.
He said: "I would like legislators to look at the way regulation is arrived at and who is responsible. I would also like to see legislators less influenced by sensationalist media publications."
Michael Coogan, director general for the Council of Mortgage Lenders (CML), agreed that the current regulatory environment created uncertainty in the banking and credit industries. He also voiced concern at the £300bn funding gap created by the Special Liquidity Scheme, adding that government should make tackling this another priority.
He said: "I think it is helpful that the FSA is going to exist and has not been disbanded, or it would have been regulatory deckchairs.
"But it is still unclear what the future will be for the banking industry, whether it will be controlled by George Osborne or in the hands of Vince Cable because he has been interested in it for so long."
Industry figures call for better regulation - 14/05/2010
Creating better and more efficient financial regulation should be a priority of the new government, according to panellists speaking at the Credit Today Summit.
The panellists, speaking at the "Future of Credit" debate held at the Grosvenor House Hotel, London, argued that the current system of regulation contained too many overlapping agendas, resulting in uncertainty and a lack of clarity. Current financial regulation across the credit industry is divided between the Financial Services Authority (FSA), the Office of Fair Trading (OFT) and the Ministry of Justice (MOJ).
Mark Thundercliffe, chief credit manager at HSBC, said: "All the regulators currently have different views.
"We do need to think through responsible regulation. What we would like to see is clarity on how regulation will look in future."
Mark Huggins, director of AA Financial Services, warned that access to credit issues meant that more regulation was likely.
He said: "We are going to see an increasing polarisation of the market between those who can access credit and those who can’t. I think that will prompt the government to regulate further."
Leo Mckee, chief executive officer of Brighthouse, also voiced concern at the way current regulation was implemented by legislators.
He said: "I would like legislators to look at the way regulation is arrived at and who is responsible. I would also like to see legislators less influenced by sensationalist media publications."
Michael Coogan, director general for the Council of Mortgage Lenders (CML), agreed that the current regulatory environment created uncertainty in the banking and credit industries. He also voiced concern at the £300bn funding gap created by the Special Liquidity Scheme, adding that government should make tackling this another priority.
He said: "I think it is helpful that the FSA is going to exist and has not been disbanded, or it would have been regulatory deckchairs.
"But it is still unclear what the future will be for the banking industry, whether it will be controlled by George Osborne or in the hands of Vince Cable because he has been interested in it for so long."
