In a recent statement, Britain's new financial services minister expressed that the government is unwilling to quantify the level of risk of consumer harm it is prepared to accept in exchange for reducing regulatory burdens and stimulating economic growth.
Aligned with a global trend, Prime Minister Keir Starmer's administration sees excessive regulation post the 2007-2009 financial crisis as hindering investment and innovation, thus pledging to address this limitation on growth.
The Financial Conduct Authority (FCA) has called on the government to provide clarity on this matter, but Minister Emma Reynolds declined to specify a figure, stating, "I don't think that is something that a government minister would do."
Acknowledging concerns regarding potential consequences, Reynolds noted, "I am painfully aware that the watchdog fears being held responsible if things go awry."
In a related context, FCA's Chief Executive Nikhil Rathi highlighted the potential risks, such as increased repossessions, that could arise from loosening controls on mortgage lending to assist first-time home buyers.
Reflecting on Rathi's concerns, Reynolds emphasized the need to consider accountability, stating, "We are acutely aware of the broader implications and who may bear the responsibility in such scenarios. This is a factor we are actively contemplating."