Financial services sector must not forget lessons of financial crisis

Britain’s financial services sector must not forget the lessons of the financial crisis, say MPs.

As the UK goes its own way post-Brexit, and tries to attract firms to London, ministers and regulators should be careful of pursuing competitiveness at the expense of strong standards, Parliament’s Treasury Committee said.

In a report, it recommended regulators such as the Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority be given a secondary responsibility for promoting long-term growth. 

Currently, both must ensure that markets and financial systems are stable and resilient.

Committee chairman, Tory MP Mel Stride, said: ‘The sector is at a turning point. While it is vital that regulators are not leant on to inappropriately water down regulations, and the committee will remain vigilant in this area.

‘There are likely to be real opportunities to lessen regulatory burdens without weakening standards.’

Regulators should also consider how the financial services sector can better serve the ‘real economy’, the committee added.