(CNN) - Speaking on foreign turf, Mitt Romney offered some criticism of his own party on Thursday, saying the GOP sometimes uses the wrong phrasing when it comes to regulation reform.
"We have in our party, I think, on occasion misspoken by just saying we're for deregulation–to some that means we want to get rid of all regulation. That's not true," Romney said at a fundraiser in London, according to pool reports.
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His comments came while the Republican presidential nominee is in the United Kingdom this week to attend Friday's opening ceremony at the Olympic Games. It marks the first leg of a three-country trip that also takes him to Israel and Poland.
Answering a question about the banking system, Romney described regulation as "essential to the functioning of markets."
"Of course you have to have laws and regulations to make free markets able to produce and to be effective," he added. "But you have to make the regulations modern and up to date."
He then reiterated his opposition to the so-called Dodd-Frank bill, also known as the financial reform bill signed into law by President Barack Obama in 2010. The bill was designed to reign in risky practices and prevent another Wall Street meltdown similar to the one that occurred in 2008.
The regulations, however, have been slowly implanted. Two years after the bill's passage, only a third of the reforms are in effect.
Critics, however, have railed against the legislation for being too heavy with regulation and argue the new law is crippling for small banks.
"Dealing with all the new regulatory burden has caused a lot of community banks to pull back. At the very time we'd like them to step forward and provide financing to small business," Romney said. "I'd like to get rid of Dodd-Frank and go back and look at regulation piece by piece."
He emphasized a need for "greater transparency in the trading of derivatives" and "capital requirements for banking institutions so that people don't go out and leverage themselves to the point where any small hiccup could cause the entire institution to fail."
While President Barack Obama saw significant support from Wall Street donors in 2008 compared to his then opponent Sen. John McCain, recent election filings show Romney dwarfs the president in fund-raising from the financial sector this cycle.
As of July 21, Romney has taken in nearly $10.5 million in contributions from securities and investment firms, while Obama has raised $3.8 million from the same sector, according to the Center for Responsive Politics.
Romney's London fund-raiser on Thursday occurred at the Mandarin Oriental Hotel, with more than 250 in attendance and tickets priced at $2,500 and $25,000.