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Why Regulators Must Take Risks to Promote Growth

Why Regulators Must Take Risks to Promote Growth

by Starling Insights

Starling Insights Editorial Board

Jan 23, 2025

Observations

In recent comments, leaders of the UK Financial Conduct Authority (FCA) have emphasized that, in order to promote growth, regulators must be allowed to take more risks.

In a letter sent to UK Prime Minister Keir Starmer last week, Nikhil Rathi, CEO of the FCA, warns that plans to ease regulations would necessarily increase consumer harm and financial failures. "We will not stop all harm when making risk-based choices about the cases and intelligence we pursue," Rathi writes.

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