FSA survey claims firms strongly believe in regulation

The majority of regulated firms believe in the importance of strong regulation post-Northern Rock, a financial services survey claims.

The Financial Services Practitioner Panel gauges attitudes on how well the industry thinks the regulator is performing.

The latest survey results reveal that out of 4,459 regulated firms 85% recognise the need for strong regulation post-Northern Rock.

This is an increase from the last survey in 2006 in which 79% of firms found regulation beneficial.

But 82% of companies still feel the current system places too much regulatory burden on firms, compared to 86% in 2006.

Nick Prettejohn, chairman of the Financial Services Practitioner Panel, says: “The survey contains messages that the FSA is already responding to post-Northern Rock – that effective supervision by people who understand the business issues and industry needs provides the best type of regulation.

“The more the FSA communicates and interacts with the industry, the more effective its regulation will be. We in the industry recognise the need for regulation particularly at this time and we stand ready to engage in that process with the FSA.”