U.K. Finance, a lobby group for the financial services sector, said intense supervision in the aftermath of the 2008 financial crisis has led to heightened systemic risks, the Financial Times reported.
In a submission for the U.K. Treasury's review of the sector's regulatory framework, the lobby group said banks and other financial companies are required to meet overlapping regulations simultaneously from multiple watchdogs without an overarching strategy. Banks now get around 18 publications weekly from regulators, the organization added.
U.K. Finance also noted that the intensive regulation has led to higher compliance costs.
The sector was once regulated by the Financial Services Authority before it was split into the Financial Conduct Authority and the Prudential Regulation Authority. There are now up to 10 other regulators overseeing the sector, including the Competition and Markets Authority and the Financial Ombudsman Service, the FT noted.
U.K. Finance urged the government to form a body to coordinate and draw the lines between the responsibilities of each regulatory body, according to the report.