When I mention to other financial services professionals that my specialty is regulation and compliance, one of the most common reactions is that of a teasing remark, “Oh, you’re one of them.” But in this post-financial crisis world, the hand of regulation has been coming down harder, resulting in industry responses stating that it is simply too much. But is it?

Some industry leaders certainly feel that way. Douglas Flint is the current Group Chairman of HSBC Holdings plc. He is also one of several senior professionals in the banking industry to complain of a heavy-handedness to regulation. The basic argument that he and others have made is that as the regulatory burden increases, bankers are compelled to become more risk averse. The subsequent result of this is that fringe areas of the financial sector, which may be unregulated or under-regulated, pick up the slack and thus the business.

In response to such complaints, the chairman of the British parliamentary Treasury committee, Andrew Tyrie, noted simply that the industry should demonstrate specifically how business is being stifled. Furthermore, he stated what I typically say in response to an ‘Oh, you’re one of them” comment: it is not just a matter of piling on regulation that has not been thought through. Regulation must be appropriate and suitable for both the public and businesses. It is not just about box-ticking, crossing t’s, and dotting i’s. Well-reasoned regulation applied to a critical sector such banking is something that needs to be in place as the business cycle continues on. One of the best ways to achieve suitable regulation is by industry involvement. In this way, not only can regulators receive input from stakeholders, but the end result will be appropriate and relevant for the industry to implement.