For regulatory lawyers, the last few years have had a somewhat dream-like quality. From being a comparatively low-level issue, regulation has shot up the agenda. Regulatory advisers are as likely to be talking to the board as to the compliance department. And the Financial Services Authority’s (FSA’s) ability to make or break businesses (or indeed, whole sections of the financial services industry) has become more and more apparent.
At one level, this is good for the lawyer, but it is frustrating to be involved in an area of law widely perceived as imposing burdens that are disproportionate to the benefits. The Government is committed to supporting enterprise, and sponsors the Better Regulation Task Force. The FSA is required by law to ‘have regard to’ proportionality, and, to give it credit, is clearly aware of the dangers of over-regulation. So where do things go wrong? Part of the answer is that regulation just grows – it seems to be governed by a number of ‘Parkinsonian’ laws:
