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In a speech yesterday at the mansion house Tracey McDermott, acting chief executive of the FCA, warned that the current intensity of regulation is unsustainable.
I am sure anyone in the financial services industry would not disagree, with even the most diligent of regulated firms struggling to remain compliant. Ms McDermott goes on to state that ‘…global clients will come to London if they believe they will receive high quality, innovative services and be treated fairly and honestly. And if they do not believe that they will go elsewhere.’ Well yes, absolutely. However, as regulated firms start looking ahead to MiFID 2, which is scheduled to arrive in only just over fourteen months, companies are beginning to wonder just what is the point of some of these new requirements. Transaction reporting, for example, will be taken to a new level of complexity. Just how much data can be processed, analysed and stored? The new requirements will certainly produce far more data than the old. Will this really help the FCA continue to chase down market abuse or could the resource be better utilised elsewhere?