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Following the Swiss - City of London Financial Round Table, the BBA and the Swiss Bankers Association (SBA) issued a Joint Declaration underlining the advantages of a principles-based approach to financial markets regulation.
“The financial services industry has more flexibility to develop its own compliance ethos within the context of its own markets, legislative backgrounds and cultures”, the declaration says. “A principles-based approach encourages a cooperative and compliance-oriented relationship between a firm and its regulator and facilitates mutual recognition of financial regulation among regulators”
“Principles based regulation is the key to the future success of international markets”, the BBA states.
'The many differences between regulators across Europe are better addressed through meetings such as these than through changes to the law or to rules”, Angela Knight CBE said. “And for the industry, to operate in a competitive market place under regulatory principles rather than detailed rules will bring better results for customers and the industry alike.'