12 December 2017
visit www.avoka.com

CBI calls for a moratorium on new financial regulation

25 October 2004  |  6021 views  |  0 london

Financial services companies are being battered by a tidal wave of regulation which is diverting IT and training budgets and threatening to undermine the sector's massive contribution to the UK economy, according to a new CBI report on the industry.

The business organisation is calling for a moratorium on new regulation, arguing that the sheer volume of new European legislation is threatening to endanger the global status of UK financial services.

CBI Deputy Director-General, John Cridland, says that companies are being forced to divert resources from productive projects to deal with new regulation: "It's vital that companies are given a substantial breathing space and not another onslaught."

The CBI report stresses the importance of the financial services industry to the UK economy, which employs over a million people and generates over five per cent of GDP. It spells out the impact of wrapping the sector in red tape as management time is diverted away from developing the business and serving customers.

CBI retail banking members say they are spending 15 per cent of their total IT budgets on compliance and that up to a third of all staff training last year was about new regulation.

The report points to a lack of overall strategy among overlapping UK regulatory bodies and too little time spent promoting the sector.

John Cridland adds: "Companies know that they have to overcome the fall out from issues such as endowment mis-selling and are determined to put their own house in order. But they clearly feel that the entire industry is being unfairly tarred with the same brush. They need the government to champion their cause even more strongly at home and in Brussels."

In a statement, UK financial watchdog, the FSA retorts: "Although the majority of the FSA's current policy effort is driven by European policy initiatives, our general approach is not to impose obligations beyond what is required by Directives."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Strain on IT shows as banks adopt business-focussed approach to compliance

Strain on IT shows as banks adopt business-focussed approach to compliance

24 September 2004  |  5842 views  |  0 comments
Anti-money laundering budgets continue to rise

Anti-money laundering budgets continue to rise

21 September 2004  |  4445 views  |  0 comments
Banks wary of Basel II costs

Banks wary of Basel II costs

28 June 2004  |  8218 views  |  0 comments
European banks to spend $4bn on Basel II compliance - Datamonitor

European banks to spend $4bn on Basel II compliance - Datamonitor

08 January 2004  |  6593 views  |  0 comments
Financial firms to increase investment in compliance

Financial firms to increase investment in compliance

12 December 2003  |  5882 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
visit http://info.nice.comvisit www.aciworldwide.comvisit www.atos.net

Who is commenting?

Top topics

Most viewed Most shared
Saxo Bank's 'Outrageous Prediction': Bitcoin to peak at $60k next year before spectacular crashSaxo Bank's 'Outrageous Prediction': Bitco...
11781 views comments | 7 tweets | 7 linkedin
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
8666 views comments | 15 tweets | 21 linkedin
Santander UK poaches Barclays innovation chief Michael HarteSantander UK poaches Barclays innovation c...
7071 views comments | 8 tweets | 17 linkedin
Alior Bank to use Open API platform and accelerator to create fintech marketplaceAlior Bank to use Open API platform and ac...
6813 views comments | 20 tweets | 11 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
6719 views comments | 17 tweets | 35 linkedin

Featured job

Competitive
Germany, Austria or Switzerland

Find your next job