FSA chairman calls for new financial services policies

Regulators need to consider implementing new policies that limit the expansion and liberalisation of the global financial services sector.

This is according to chairman of the Financial Services Authority (FSA) Lord Turner, who was speaking at the Reserve Bank of India in Mumbai.

He explained that there is a need to challenge the assumption that the market is allowed to expand without limitations, noting that the consensus is that regulations need to change in order to bring stability to the system.

Among the moves he suggested was the implementation of macro-prudential tools to control credit expansion in developed countries, as well as levers that focus on ’putting sand in the wheels’ of short-term speculative trading - something that could affect those with large sums of private wealth.

Last week, Gordon Brown said in an interview with the Financial Times that he is hopeful an agreement regarding a global banking tax will be reached at the G20 summit in Canada this June.ADNFCR-2318-ID-19618194-ADNFCR