UK’s deregulation drive raises compliance risk, say top lawyers
The United Kingdom’s latest effort to encourage regulators to pare down rules to attract companies and investment as a way to stimulate the economy has received mixed reviews from lawyers.
That’s because the drive to scrap regulations not only brings into question which rules should be deemed defunct and why, but more importantly, whether the UK’s system of regulators acting as both watchdogs and market cheerleaders is conflicted and flawed. Relaxing regulatory scrutiny to make business run more smoothly could create the opposite effect.
“Deregulation could bring an increase in risk,” warned Parham Kouchikali, a partner at law firm Taylor Wessing. “We expect there could be an uptick in investigations and disputes in the next three to five years as a result.”
Related articles
-
PremiumUK regulator’s efforts to coax self-reporting fraud could fall flat, experts warn
To both clean up corporate behaviour and rack up its own enforcement record, the UK’s anti-bribery agency has seemingly largely guaranteed companies a pass from prosecution if they spill the beans on their misconduct. There’s only one problem: experts believe businesses may still stand a better outcome if they front ...
-
PremiumDelayed UK antitrust case underscores compliance, reputational risks
Antitrust infringement cases in the United Kingdom can run on for years, but there’s a question whether issuing fines that are dwarfed by the revenues of those organisations involved is a worthy deterrent—particularly if they are imposed over a decade after the misconduct ended. It’s also debatable whether the first ...
-
ArticleNew regulatory regimes for U.K. and EU ESG ratings firms could increase compliance costs
Environmental ratings are becoming big business as companies seek proof of sustainable and socially beneficial conduct, both to avoid accusations of greenwashing and convince investors and customers they have enduring value. Firms that issue ratings on environmental, social and governance (ESG) performance are set to be regulated in the EU ...
More from Regulatory Policy
-
ArticleFRC’s plans for more flexible enforcement gains support
Plans to give the U.K.’s audit regulator more options to regulate firms for sloppy work have been largely well received by experts, who believe the current system is “inflexible,” “cumbersome,” and “slow.”
-
News BriefFDIC eases leverage rules for banks, citing lower risk burdens
The U.S. Federal Deposit Insurance Corporation issued a final rule to change the leverage capital requirements for both large and community banks. The agency said the modification will ”reduce disincentives a banking organization may have to engage in lower-risk activities.”
-
ArticleU.K. Cyber Security and Resilience bill set to regulate critical infrastructure suppliers
Suppliers to the U.K. critical infrastructure will face new regulations to ensure they are protected from cyberattacks. The Cyber Security and Resilience Bill, introduced on November 12, also raises penalties for breaches and expands regulator powers to label certain suppliers as critical.