Recommendation 117

Whilst it is of vital importance that the firms which pose the greatest systemic risk to the UK financial system are appropriately supervised by knowledgeable and experienced staff, we were told that this concentration of experience has negative implications for the growth of smaller firms, particularly start-ups. Innovate Finance noted that: “The capacity and capability of the regulators are consistently raised as a concern to us by our members”, 184 and stated that: “We need all teams in the regulator, including supervisory and policy teams, to embrace and champion innovation in financial services.” 185