FSA chairman warns of hard-line regulation
The days of light-touch regulation are over, according to Lord Turner
LONDON – Lord Adair Turner, chairman of the UK Financial Services Authority (FSA), has announced that the age of light-touch regulation is over. In an interview with The Guardian newspaper, Turner warned banks will face more hard-line supervision.
"There will be more people asking more questions and getting more information than we were getting before," he told The Guardian. "There is no doubt the touch will be heavier. We have to make sure it is intelligent and focused on where the risks really are."
Turner also confirmed the regulator is no longer going to supervise banks on the cheap, promising to pay more than necessary to attract the most experienced employees.
He told The Financial Times: "We will pay more than necessary to attract the correct quality of people from outside.
“Poachers turned gamekeepers are very attractive to hire. The FSA, in relation to systemically important firms, was trying to do regulation on the cheap," he said.
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