Financial regulation needs to be reformed, senior executives claim

21 April 2010

More than 80 per cent of senior business figures have called for the next UK government to overhaul financial regulation, a new report has revealed.

Findings from a study by DLA Piper showed that more than a third said that Conservative head David Cameron would be the most effective prime minister at leading the recovery of UK business.

According to the results, directors at failed organisations need to be penalised more over bankers.

Up to 60 per cent of respondents also said they opposed the introduction of new taxes on banker bonuses.

Catherine Usher, London Managing Partner at DLA Piper, said: “Perhaps too much focus has been on the fairly narrow issue of "bankers' bonuses" - something which our results suggest does not overly concern UK business executives - and it seems that a broader root and branch review of regulation affecting UK businesses is required.

“What is certain is that the next government faces the challenge that the prevailing view from corporates in this country is that the regulatory framework is insufficient in its current form."

Further findings from the study revealed that 45 per cent of respondents called on the authorities to act to prevent organisations deemed ‘too big to fail’ from becoming insolvent.

DLA Piper’s study questioned almost 550 leading business figures from its client-base.

By Jim Ottewill

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