Finance Innovation Lab calls for purpose-driven approach to financial regulation
Financial start-up support charity The Finance Innovation Lab has released a report calling for a new regulatory compass, with financial regulators in the UK being urged to adopt a purpose-driven approach to financial regulation.
The report, entitled The Regulatory Compass: Towards a purpose-driven approach to financial regulation, suggests that regulators change their approach to make sure that the financial sector can deliver for the UK economy and society after Brexit.
The Finance Innovation Lab’s report offered a number of recommendations for the UK government, suggesting that a review based on full democratic consultation is carried out in order to develop a set of purposes that can be agreed upon for the financial system.
The report also suggests that the government uses the results of the review to update the mandate of the Bank of England and the Financial Conduct Authority, with regular reports on achievements being made to parliament.
Regulators are also being urged to make better use of regtech (regulatory technology) and to establish a new Diversity Hub as part of their approach to innovation.
Commenting on the importance of UK financial regulators changing their approach, Finance Innovation Lab’s Executive Director Anna Laycock said: “If we want to ensure our future financial system delivers for the economy and society, we need new regulatory mandates, rooted in democratic consultation.”
She added that we need new metrics that focus on what truly matters and a different mind-set that embraces completely human-centred regulation.