Call to ease financial policing
Monday 20 March 1995
Jim Stretton, UK chief executive of Standard Life, says Britain's new arrangements for supervising retail financial services through the personal investment authority are "wrong, muddled and dangerous", lead to unachievable expectations, and prevent healthy developments in the market.
Standard Life was one of the last big institutions to join the PIA, because of these reservations. Mr Stretton says that regulation of the life assurance industry needs fundamental review. "We simply cannot continue the vicious circle of impossible expectations which lead to breaches of those expectations, and which then induce regulators to increase the extent of their activities and create even more impossible expectations."
The theme that regulation is harmful is taken up by Harold Rose, visiting professor of finance at the London Business School. Prof Rose argues that regulation often simply helps keep new competitors out of the market. He recommends replacing controls on financial institutions with greater disclosure, and relaxing libel laws to allow franker press comment.
Some support for the theory that regulation simply protects vested interests is provided by Donald Brash, governor of New Zealand's central bank. Mr Brash describes the changes New Zealand is in the process of making to its banking supervision arrangements. Concerned that the existing arrangements were too costly and reduced the effectiveness of market disciplines, New Zealand is introducing instead quarterly disclosure requirements. The only objections to the changes, according to Mr Brash, have come from the banks themselves.
Additional disclosure is seen as the key to protection from derivatives disasters by Maureen O'Hara, professor of finance at Cornell University. "What is needed to protect the financial system is not so much greater regulation as greater disclosure of trading information."
- 4 #JeSuisEd: People share photos of themselves eating awkwardly in solidarity with Labour leader
- 5 Women think Irish men are the sexiest, survey finds
Italian police 'reveal' what Jesus looked like as a young boy
Mysterious 'X-Files' sounds heard miles above the Earth
Florida couple forced to register as sex offenders for having sex on public beach
Who should I vote for in the general election? Take The Independent's interactive quiz to find out which party is the right choice for you
General election: Conservatives mocked online over Boris Johnson's claim of SNP 'jockalypse'
In defence of liberal democracy
General Election 2015: Post-election 'shambles' looms as 70 per cent of voters say SNP 'should not be able to veto UK government policies'
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
General election live: SNP suspends two members for disrupting Labour rally
General Election 2015: Sturgeon claims Scots 'appalled' by Ed Miliband's refusal to work with SNP
iJobs Money & Business
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£27 - 35k + Bonus + Benefits: Guru Careers: A Management Accountant is needed ...
£40-50k + Benefits.: Guru Careers: A Project Manager / Business Analyst is nee...