ICT Views

What does Sajid Javid mean when he says: “We will take a fresh look at de-regulation?”

by: (Global Head of Governance, Risk and Compliance) on

The son of a bus conductor, living above his father’s shop and business, to becoming a high profile banker at Chase Manhattan and then to Deutsche Bank; a change of career and pay to a life in politics and as of as of 24 hours ago Sajid Javid has become David Cameron’s Business Secretary.

So why is this story so important?

Well, in his interview on the Today programme, Javid mentions de-regulation a number of times. Unfortunately he was not probed by Radio 4 on banking regulation and whether the number of initiatives set up by the previous coalition government are included in his hit list of proposed de-regulation.

Businesses without a doubt concur on the challenges of complying with regulation, particularly in the banking sector. The Financial Services Act 2012 was enacted to primarily abolish the Financial Services Authority (FSA) and create the Financial Conduct Authority (FCA), Prudential Regulation Authority (PRA) and the Financial Policy Committee (FPC). This has brought a host of compliance requirements, in particular to the principles, rules and outcomes focused requirements set by the FCA and PRA that regulated firms need to comply with. Although, it could be argued this regulation should be welcomed, as it did close a gap where the FSA failed to address, what would be termed as macro-prudential regulation, which missed what was occurring in the sub-prime markets in the US and the knock on effects in the UK.

bankOther regulation brought in by the coalition government was the Financial Services (Banking Reform) Act 2013, which addressed the jailing of senior bankers if they caused banks to fail. But are the government really going to let a bank fail?

Cameron has been proactive in advocating more transparency in identifying the true beneficial owners of complex corporate structures, which are used by both legitimate businesses and criminals to either avoid tax through transfer price abuse or hide proceeds of crime respectively. Osborne stated that the City needs to clean up corruption, so, I think these activities will result in more regulation, not less. It is not clear if Javid will look at the banking sector with his previous experience in that area, especially in the developing countries and the flow of illicit financial capital, but that’s another story!

We look at all these aspects in the number of our different courses. Take a look at all the ICA qualifications that we offer here.

Categories :



Comments closed


Tel: +44 (0)121 362 7534

Blogger facebook LinkedIn Twitter youtube google + Trust Pilot

© 2017 – International Compliance Training Ltd, a division of Wilmington plc. International Compliance Training Ltd, is a company registered in England & Wales with company number 4363296 GB. Registered office: Wilmington PLC, 5th Floor, 10 Whitechapel High Street, London. E1 8QS VAT NO.GB 899 3725 51