Last week the Financial Services Authority (FSA) took a significant step in seeking to lead the international debate on the future architecture and standards for the global financial regulatory system. But given the politically-charged nature of the issue, it remains to be seen whether the FSA’s proposals will attract global consensus. The first test is likely to be the forthcoming G20 summit in London on 2 April.

The Turner Review, a regulatory response to the global financial crisis published last week, outlines the circumstances that led to the crisis and proposes ways to try to fix the problems and prevent them from happening again. Of course, regulators have a very difficult job on their hands. Faced with domestic political pressure to take a hard line on financial institutions, they must not lose sight of the value of a successful financial services sector to the economy as a whole.