Recommendation 113

A concern that was raised repeatedly in the evidence that we received related to the quality of supervision, which witnesses connected to the capabilities and experience of supervisory staff. The quality of supervision is central to the predictability of the regulatory regime and can pave the way for the sustained growth of regulated firms. Supervisors monitor risks and can detect incipient problems. Transparent supervisory expectations, which account for a firm’s business model and market sector, can clarify how the rules will be applied and support firms to navigate the regulatory environment.