The 'Revolving Door' between politics and business

The appointment of Christopher Woolard, the former head of the Financial Conduct Authority, to EY's partnership illustrates that the 'Revolving Door' is still very much in action.

The 'Revolving Door' between politics and business describes the movement of individuals who held positions as regulators into roles within the private firms that they were once responsible for regulating. The connections and influence that they hold provide significant value for firms in the form of political lobbying and the shaping of regulation.

This is a great example of how regulatory capture may occur and lead to government failure - as individuals such as Woolard may be better placed to encourage regulation that benefits their firm (rather than consumers).