The Deputy Governor takes as given that effective regulation needs input from market practitioners if it is to offer appropriate protection to the public without stifling innovation. The Deputy Governor looks first at the existing regulatory structure in the United Kingdom, and the proposals for change. He explores the case for a model comprising three agencies, focused on financial services, banking, and insurance; and he argues that the synergies between a supervisory function and other central bank responsibilities continue to justify keeping banking supervision within the Bank of England. The Deputy Governor goes on to consider the international regulatory structure—stressing its particular importance for the United Kingdom given London’s international markets. He argues that, beyond information-sharing among regulators, effective supervision of international financial groups requires consolidated supervision; he also says that the United Kingdom is keen to examine the practicability of introducing the concept of a ‘lead regulator’.