US regulator says it should “adopt” FSA regulation

Recent reports and surveys show how highly regarded the Financial Services Authority (FSA) is around the world and it seems that its approach to financial services regulation has even influenced the thinking of the head of the US’s Federal Reserve Bank. In a speech delivered in the US recently concerning credit derivatives, Ben Bernanke, chairman of the Federal Reserve Bank, said principles-based regulation should be given priority over prescriptive rules and named the FSA as a model for how such an approach can work.