Cutting red tape could attract more bad actors in finance sector, says FCA boss

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Nikhil Rathi told MPs on the Treasury Select Committee that there will be increased risk-taking as part of proposed changes by Government.

The boss of the UK financial regulator has warned it will not “be able to stop everything”, amid concerns that plans to cut red tape will encourage bad actors.

Chancellor Rachel Reeves pledged last month rip up financial red tape, saying that regulatory changes after the 2008 economic crash have “gone too far,” in a speech at Mansion House.Mr Rathi said: “If you are going to allow more risk into the system, sadly, in the financial services industry it can attract people that don’t have the best of intentions.The Chancellor called on regulators, including the FCA, to push for a greater focus on growth, to boost the economy over the coming years.

He added: “This was a very lively debate, but all the way we have said very openly that more things will go wrong over time.

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