FCA chief vows to break the 'cycle of regulation'

In a speech due to be delivered last night at Mansion House, McDermott acknowledged there is a need to soften the regulatory grip on firms - but warned against complacency and forgetting the "lessons of the past". She told guests the regulator had come a long way towards eliminating the causes of bad behaviour in recent years but the current intensity and volume of regulation was "not sustainable" for either industry or regulators. The danger, she said, was a "sensible desire" to reduce unnecessary regulation would allow the "pendulum to swing too far". "We become caught in a loop ...