6  All speeches are available online at www.bankofengland.co.uk/speeches  6  To put greater emphasis on individual accountability, the UK has introduced new compensation rules that go much further than other jurisdictions in aligning risk and reward. And we have put greater stress on the importance of better governance and firm culture. At the heart of these efforts are new codes of conduct developed by the market for the market, including those of the UK-based FICC Market Standards Board and the new global code for FX markets. 10  Since codes are of little use if no one reads, follows or enforces them, the UK has instituted a unique Senior Managers Regime to embed cultures of risk awareness, openness and ethical behaviour. Based on its early successes, international authorities are now considering following the UK’s lead. IV. Effective Supervisory Cooperation and Coordination is Essential  Better regulation is not enough. To build responsible financial globalisation, international authorities must also share relevant information and work together to manage cross border challenges to financial stability. There are three critical elements to international regulatory cooperation. First, we need common minimum standards and consistent implementation. While regulations need not be exactly the same, they should deliver similar outcomes. This is now possible given progress at the FSB, where a series of agreed reforms are levelling the playing field and reducing opportunities for regulatory arbitrage. The UK is implementing its rules consistently, fairly and transparently. For example, the PRA’s regulatory standards are the same for domestic and international banks.

13  The statement is available at http://www.bankofengland.co.uk/publications/Documents/news/2017/008.pdf. 10  All speeches are available online at www.bankofengland.co.uk/speeches  10  VII. Conclusion  The UK has been at the forefront of efforts to make the global financial system safer, simpler and fairer. Recognising our role as guardians of the leading international financial centre, we have gone further than these minimum global standards. These efforts ensure that the world’s largest international financial centre both protects and serves the UK economy. And they mean that others can rely on us as a pillar of strength for the international monetary and financial system. As the FPC has made clear, we won’t turn our backs on these hard won gains. There should be no bonfire of financial regulation. But we will be dynamic – learning by doing and making adjustments, as necessary, to optimise our efforts without compromising on the level of resilience the world’s leading international financial centre demands. We will ring fence our banks to protect the core retail financial services they provide to households and companies. We won’t allow undercapitalised, opaque financial institutions to operate freely within our borders. But, while we won’t hesitate to do what’s necessary to protect the UK real economy, we will also work tirelessly for a responsible and open financial system that benefits all. A decade of hard fought financial reform creates enormous opportunities. It is all too easy to give into protectionism, but the road less taken is often the most rewarding.