The Compliance Revolution. Jackman David

in 2007, prior to the crash, 76 percent of UK businesses surveyed predicted that the “burden from regulation would increase” in the next year, this figure fell to 43 percent.6

      Why is this, when a rational response would be to cut budgets, numbers, and status and try some other way? Why may businesses be more accepting of regulation following a crisis than in times of plenty? The answer lies in the question. There is no plan B, no other way available, apparently, for the moment. This lack of alternative has allowed an opportunity for compliance and regulators to reassert their credibility. The default setting continues to be more rules, more and heavier enforcement intervention, and more expectations placed on compliance functions. The industry and its stakeholders seem to have no other option but to continue to believe in the compliance infrastructure as the principal instrument for maintaining stability and improving outcomes. However, the legacy of failure includes:

      1

      Monetary Authority of Singapore, Tenets of Effective Regulation (revised 2013). Singapore: MAS, p. 9, http://www.mas.gov.sg/∼/media/MAS/About%20MAS/Monographs%20and%20information%20papers/Tenets%20of%20Effective%20Regulationrevised%20in%20April%202013.pdf (accessed 13/

1

Monetary Authority of Singapore, Tenets of Effective Regulation (revised 2013). Singapore: MAS, p. 9, http://www.mas.gov.sg/∼/media/MAS/About%20MAS/Monographs%20and%20information%20papers/Tenets%20of%20Effective%20Regulationrevised%20in%20April%202013.pdf (accessed 13/12/2014).

2

D. Jackman, “The Housing Market Has No Clothes,” Financial Adviser (June 23, 2006).

3

D. Summers, “No Return to Boom and Bust: What Brown Said When He Was Chancellor,” Guardian Online (Sept. 11, 2008), http://www.theguardian.com/politics/2008/sep/11/gordonbrown.economy.

4

Financial Service Authority, The Turner Review: A Regulatory Response to the Global Banking Crisis (London: FSA, 2009) 11, http://www.fsa.gov.uk/pubs/other/turner_review.pdf.

5

Robert J. Shiller interviewed by Christopher Jeffery in Central Banking Journal (May 16, 2012).

6

Department for Business, Innovation & Skills, Growth Dashboard (July 18, 2014), www.gov.uk/government/uploads/system/uploads/attachment_data/file/337297/Growth_Dashboard_July_2014.pdf. Accessed 10-Dec-2014.

6

Department for Business, Innovation & Skills, Growth Dashboard (July 18, 2014), www.gov.uk/government/uploads/system/uploads/attachment_data/file/337297/Growth_Dashboard_July_2014.pdf. Accessed 10-Dec-2014.