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."
- 3 The enemy within: People who hear voices in their heads are being encouraged to talk back
- 4 Phil Neville backtracks on Tomas Rosicky 'I'd smash him' comments from Match of the Day 2
- 5 SAG Awards: Fake applause track interrupts Reese Witherspoon
Rowan Atkinson to sell £10 million McLaren 'supercar' he crashed into a tree and a lamppost
Paris attacks: Do not call Charlie Hebdo killers 'terrorists', BBC says
Asteroid narrowly scrapes past Earth: how to watch the closest space rock for decades as it flies by
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...