In today’s financial news, the Deputy Governor of the Bank of England – Sam Woods – said that the Bank would see its regulatory capability stretched in the wake of the U.K.’s secession from the E.U. to a point that would demonstrate a ‘ material risk to [the Prudential Regulation Authority]’s objectives ’. The basis for Woods’ suggestion is that the potential loss of financial ‘passporting’ in the wake of Brexit would both result in dispersed regulatory entities, and also an influx in companies needing to be regulated due to the removal of the ability to essentially outsource the regulation of an entity to another ‘competent authority’. Whilst this point is worth assessing, and this post will briefly do that, it is also worth taking a broader look at the state of the U.K.’s regulatory framework in terms of its capability . Sam Woods’ comments regarding the ability of the Prudential Regulation Authority (PRA), the regulatory arm of the Bank of England, were extremely direct. Wood...