Financial bosses need to earn the regulators' trust: Strauss

Bosses of financial firms need to win the confidence of the incoming regulators to avoid any harsh new rules, according to ABI board member and Lloyds Banking Group group director insurance Toby Strauss.

Speaking at an ABI and Freshfields Bruckhaus Deringer event, Strauss said that financial services needed strong regulation from the Financial Conduct Authority and Prudential Regulation Authority, but not so harsh that it restricted the market.

He said: “Getting the balance right will require everyone with an influence on the regulatory environment, be that regulators, politicians, policymakers, and obviously the industry, to be moving in the same direction, with the same objectives, the same sense of urgency and the same level of commitment.

“That’s why I believe possibly the biggest test of the regulatory environment is the leadership challenge it poses for us all.”

Strauss added that the new regulators would be critical of financial services, so the leaders of financial firms needed to earn their trust.

This could be done by improving the culture, standards and professionalism of financial services firms and encouraging simplicity and transparency in how these firms design and sell products and deal with complaints, he said.

He added: “It is up to us as senior leaders to get this message across to our firms and the industry collectively that gaining the trust and confidence of our regulator will come from demonstrating that focus we have on delivering value for our customers.”