In his speech at the Lord Mayor’s dinner for bankers and merchants of the City of London, the Chancellor of the Exchequer, George Osborne MP, stated that the British economy is concerned with two key issues: (i) what the right culture of regulation is; and (ii) how international rules apply and where successful banks fit in. Culturally, Osborne attacks the current tripartite system stating that the decision to divide responsibility for assessing systemic financial risks from the responsibility for applying that assessment to particular financial institutions created a regime in which no one was in charge and required endless box ticking and costly processes. The Government is therefore proposing a completely new culture of regulation governed by the Financial Policy Committee, the Prudential Regulation Authority and the Financial Conduct Authority. Osborne argues that global standards are strongly in the UK’s national interest and that in particular the Government wants to see the full implementation of the Basel III standards around the world. He also states that pay in the financial services sector should be regulated internationally to avoid a race to excess. However, he also argues that the European rules implementing Basel III should give national regulators the discretion to add to the requirements where national circumstances require it and that more generally the UK will always fight against badly thought-through European legislation.