Regulators in revolt over 'duplication of effort'
Thursday 18 May 1995
The attack on the board from the Securities and Futures Authority and the Investment Management Regulatory Organisation (Imro) is the most damaging yet faced by the regulator.
The row was fuelled by a speech last night by Christopher Sharples, chairman of the authority, at his members' annual dinner.
Mr Sharples told guests that he agreed with some comments from Labour's City spokesman, Alistair Darling, about the difficulties of making the present regulatory system work.
At present, regulators such as the SFA or Imro are responsible to the Securities and Investments Board. In turn, the SIB answers to the Treasury. But Mr Sharples said this system was "propagating a situation where genuine accountability is being replaced by regulation of regulation and buckpassing".
"Duplication of effort becomes the norm, reactions to new developments slow down, confusion is created in the minds of overseas counterparts, regulatory costs compound," Mr Sharples said.
The focus should be to strengthen the front-line watchdogs such as the authority , but uniting all regulators in one body, as Mr Darling had proposed, would be counter-productive. A single agency would be less flexible, less pragmatic, slower to respond and "unable to distinguish between totally different philosophies needed for dealing with wholesale markets at one end and packaged products at the other."
The answer lay in reducing duplication of effort and costs. If the three tiers of regulation were to remain their roles had to be delineated more clearly.
Mr Sharples declined to comment further on his speech. A similar view was expressed last night by Phillip Thorpe, chief executive of Imro. He said: "I am concerned. Although we have a good relationship with SIB, I think it does at times stand in the way of full accountability."
The Securities and Investments Board said: "It is not really possible to comment about a speech which we have not been able to study first."
- 1 East 17 bandmember Brian Harvey in 'very desperate situation’
- 2 Germanwings plane crash: Video shows co-pilot Andreas Lubitz learning to fly as a teenager
- 3 Vladimir Putin says Russia will fight for the right of Palestinians to their own state
- 4 Germanwings crash: Captain of doomed plane was only 'on board because he changed job to spend more time with his children'
- 5 WrestleMania 31 results: Seth Rollins stuns WWE as he cashes in Money in the Bank contract to claim title from Brock Lesnar
East 17 bandmember Brian Harvey in 'very desperate situation’
Vladimir Putin says Russia will fight for the right of Palestinians to their own state
Ohio Democrat Teresa Fedor speaks out during abortion debate to reveal she has been raped – and is interrupted by laughter from Republicans
Children take eight Isis captives to be beheaded in latest propaganda video
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
£18000 - £20000 per annum: Recruitment Genius: A Client Services Assistant is ...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£32000 - £38000 per annum + benefits: Ashdown Group: A highly successful, inte...
£20000 - £35000 per annum: Recruitment Genius: This multi-award winning foreig...