Carolyn Cohn and Huw Jones

LONDON (Reuters – Britain’s finance minister highlighted several reforms and defended regulators against criticisms that they take too long to license companies. He said flawed applicants should not be allowed through.

Regulators and the ministry are being pressured to improve financial regulation to maintain London’s competitiveness globally after Britain has left the European Union.

As it struggles with an internal overhaul and a pay structure that is disillusioning some employees, the Financial Conduct Authority was criticised for taking too long to authorise crypto firms.

John Glen, minister of financial services, stated that he holds high regard for both the FCA’s leadership and the Bank of England counterpart. He also said that critics of regulators are often criticized because they do not get what they desire.

Glen acknowledged that he had heard of frustrations about licensing wait times. He told Nikhil Rathi at FCA that due to the complexity and new type of financial firm like crypto, some consideration needs to be made to make them more responsive.

However, some applicants had never dealt with regulators before and they needed to recognize that high standards must be adhered to, he stated.

Glen stated that it is okay to not respond quickly to requests if the applicant has underlying problems,” Glen said before a House of Lords Committee.

“We shouldn’t be looking for nimbleness at any cost.”

He is under pressure from Brexit to take “freedoms”, and has been studying rules in sectors such as cryptoassets.

Glen stated that he could comment more on crypto and that after Easter, a consultation paper will be available on the reform of insurance solvency rules’ so-called matching adjustment.

Glen stated that legislation on a framework to write financial rules may be introduced to parliament in the near future. This would allow regulators to respond quicker to changes in markets.

He said that regulators should have a primary objective, not a secondary one to assess any potential impact on industry competitiveness.

He said that a change to the rules might allow Britain’s “captives”, or licensed, in-house insurances, to grow. These are companies who seek to reduce costs by self-insurance.

“It is time for more work. Glen stated that he hoped to see a shift in how insurance and reinsurance are offered to large corporations.