The City must be at the forefront of regulatory changes in the financial services sector, according to one expert.
Graham O'Connell, a partner at PricewaterhouseCoopers (PwC), explained that tighter rules relating to banks and other institutions will help restore confidence in them and British firms must make sure they do not miss the boat.
However, Mr O'Connell warned that these regulatory changes will have to be made at a time when many firms are already struggling with a lack of liquidity, losses and difficult trading conditions.
"Many institutions will be forced to re-evaluate the viability of and evolve their business models to adjust to the proposed [regulatory] changes," he said.
Mr O'Connell's comments follow the release of Lord Turner's report on the role of the Financial Services Authority.
According to Lord Turner, the FSA must now focus more on the decisions of senior executives, rather than the systems and controls that have been put in place as it did in the past.
