The financial services sector must not forget the lessons of the financial crisis

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Regulators must remember the lessons of the 2018 financial crisis and work to promote long-term growth, warn MEPs

The UK financial services sector must not forget the lessons of the financial crisis, say MEPs.

As the UK goes its own way after Brexit and tries to attract business to London, ministers and regulators must be careful not to seek competitiveness at the expense of high standards, Parliament’s Treasury Committee has said. .

In a report, he recommended that regulators such as the Financial Conduct Authority and the Bank of England’s Prudential Regulation Authority be given a secondary responsibility in promoting long-term growth.

Change of strategy: Parliament’s Treasury Committee has recommended that regulators be given secondary responsibility in promoting long-term economic growth

Today, both must ensure that markets and financial systems are stable and resilient.

The chairman of the committee, Tory MP Mel Stride, said: “The sector is at a turning point. While it is vital that regulators are not called upon to inappropriately water down regulations, the committee will remain vigilant in this area.

“There will likely be real opportunities to ease regulatory burdens without weakening standards.”

Regulators should also think about how the financial services sector can better serve “the real economy”, the commission added.

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