Regulators Are Harming UK as a Financial Center, Lords Warn (1)

A culture of risk aversion and mission creep among UK financial regulators is undermining trust and placing costly burdens on banks and insurers, an influential group of parliamentarians found.

The House of Lords Financial Services Regulation Committee said officials need to clip the wings of the Financial Ombudsman Service, whose awards for motor finance claims have been so large foreign firms fear there is a “regulatory penalty attached to investing in the UK.”

The findings from lawmakers in Parliament’s upper house were published Friday in a report on the secondary growth and competitiveness objective that the government has given the ...