Warnings against simplifying regulations from Dutch regulator – 18th May 2017
A Dutch central banker has defended the complexity of existing regulation and warned that simplifying regulation could risk bringing the system to a standstill. Frank Elderson, executive director at DNB, said that although it was true regulation had become complex following the financial crisis, it would be unwise to ease regulatory requirements across the board. “Over the years, the rulebook has become more complex; very complex, in some cases, but to a large extent this mirrors the increased complexity of the financial industry itself,” Elderson said in a keynote speech at the first Lustrum Conference of the Hazelhoff Centre for Financial Law at Leiden University. Simplicity not always the answer He said that although there were merits to having simple rules, in many areas of financial regulation a detailed approach was appropriate to account for the complexity of the underlying risks that had to be managed.
Wietske Jarvis-Blees, Regulatory Intelligence