Good news in the finance sector at the moment and particularly the mortgage market is rare, so it was good to see a recent speech by Hector Sants, Chief Executive, FSA entitled “Regulation & Entrepreneurs – What is the role of regulation in facilitating the development of innovation & entrepreneurs ?”.

Mr Sants talks of the FSA being required to “have regard to the desirability of facilitating innovation” by which he means that the regulator will not place unnecessary obstacles in the way and will support new initiatives, especially those that promote healthy competition in the UK and provide consumers with greater choice.

He also comments on a regulatory environment that encourages creativity, innovation and competition which must allow firms to be free to take risks and make mistakes. As regulators the FSA are not looking to eliminate risk, stating “it is simply not possible” but they do want firms to understand the risks they are taking and manage these appropriately.

One of the most positive points mentioned, which we found especially encouraging, was where he explained how the FSA “and its guiding beliefs and objectives contribute to making the UK an environment in which entrepreneurship is rewarded, and in which entrepreneurs in the financial services sector, in particular, can succeed”

Given our planned launch into the market in 2009 with innovation as a key component of our proposition, it was very refreshing to read. Full details of the speech can be found by clicking here

Tony Rogers

Compliance Manager