In his keynote address, Tiner was full of praise for the contribution asset management firms make to the success of the UK financial sector in the global market. He described asset management as "a cornerstone of the British financial services marketplace" making it the third largest in the world after the US and Japan. Citing a report published earlier this year on the regulatory environment for asset managers in the UK which raised concerns about the cost and burden of regulation, Tiner was keen to assure asset managers that the FSA was mindful of maintaining the UK's competitive position.

The OXERA report entitled, "The Future of UK Asset Management" said that although the regulatory regime in the UK compared to the rest of Europe and the USA was for the most part "regarded favourably", it was also critical on a number of points. It described UK regulation as "bureaucratic, prone to gold-plating, excessively rigid in the implementation of EU Directives, and more recently subject to excessive change".

In response to a growing chorus of concern the FSA recently commissioned Deloitte to carry out research to measure the real costs of financial regulation among regulated firms. The FSA is believed to be the first financial regulator to undertake such a project. The implementation of the Financial Services Action Plan (FSAP) and in particular the much criticised Markets in Financial Instruments Directive (MiFID) are likely to figure closely under the spotlight.

Tiner said, "We are acutely aware that the strongly competitive position of the United Kingdom cannot and must not be taken for granted, especially in a world where capital, skills and technology are increasingly mobile, and competition among regulators to create the most attractive environment is alive and kicking. Hence we take very seriously the messages in the report about regulation".

The full text of John Tiner's speech to the Annual Asset Management Conference is available on the FSA website.