A top think tank has warned that over regulation could cost the UK its poll position in the market industry.

The FSA is causing a headache for innovation and slamming too much regulation on the City, the Centre for Policy Studies said today.

The centre condemned the FSA saying: “Its lack of accountability has nurtured a sense of disengagement and growing disillusionment with the financial services industry.”

It also criticised the FSA for being under political influence, rather than maintaining an independent stance.

Small businesses, it said, were most at risk from over regulation.

Topics