The Governor reviews the planned changes in the regulation of financial services in the United Kingdom following the major reforms now under way in the securities industry.
In the more competitive environment after 'Big Bang', both the risks and the scope for conflicts of interest will increase, reinforcing the need to strengthen market regulation and investor protection. The Governor argues that the proposed new regulatory framework to meet these needs-which will be based on statute but, in keeping with the City's tradition of regulation by consensus, will be run primarily by practitioners-offers a combination which should provide effective investor protection while retaining flexibility of response to structural change.
In a broader context, he goes on to stress the importance of the establishment of effective arrangements for co-operation and exchanges of information between different regulatory authorities, both within the United Kingdom and internationally.
City regulation after Big Bang - Governors speech