Tomorrow the Adam Smith Institute — one of the leading think-tanks — publishes is contribution to the debate, and could scarcely be more damning of the FSA’s position and proposals.
Far from expanding the role of the Financial Services Authority, these authors recommend shrinking it back to its level of competence. The FSA, they say, is part of the problem not part of the solution, and the thrust of Turner’s proposals, which it characterises as more form-filling and box-ticking, will perpetuate the problem whereby the FSA looks all too closely at details but misses the big picture.
Instead of creating more panels of regulators, the Adam Smith Institute suggests making much better use of the structures we already have, such as the Financial Reporting Council and the audit profession.
Instead of an international regulator, it recommends better liaison between national regulators.
Most of all, instead of more regulation, it recommends better supervision and that surely is the key.
Published in the Evening Standard here