Grovelands Jess Cooper gives us her take on the impact of twin peaks regulation to UK banking.
Whilst on paper these changes sound all well and good, there have been concerns expressed as to the necessity of such a split, and its potentially negative impact.
Some argue that given the current economic instability, internal reorganisation is taking away focus from preventing further damage; taking valuable staff time away from preventing further damage in order to implement what is a complex structural process. The 352 employees who have quit the FSA over the last 12 months, including several senior figures, could be a reflection of this concern.
Whilst increased intervention is aimed at protecting the consumer, it also stands the risk of preventing growth in the economy by discouraging business in our capital, chasing it away to rival foreign markets with less stringent regulations.
Although there are two sides to the FSA debate, we as a company are keen to keep an eye on the ball and maintain our close relationships with associates on both sides of the new regulatory authorities. Nobody can predict their effectiveness, however we can still strive to keep up to date and provide the best service we can, regardless of changes.