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."
Exclusive: World’s most pristine waters are polluted by US Navy human waste
Missing Malaysia Airlines Flight MH370: Any terrorist seizure of the plane ‘would have required one hell of a piece of planning’
Croatia's second city to close 'worst zoo in the world' after reports of 'nightmare' conditions and 'depressed' animals
Missing Malaysia Airlines Flight MH370: Hijackers, pirates or suicide – the theories surrounding the mystery
Missing Malaysia Airlines Flight MH370 Q&A by Simon Calder: How far could it have travelled? Who was responsible and what would their plans be? And how can a plane just vanish?
Katie Hopkins continues campaign to become Britain's most hated talking head with poorly timed Bob Crow tweet
No EU referendum under Labour: Ed Miliband to reveal that vote on membership is ‘unlikely’ in next Parliament if party wins power
Ukip and Nigel Farage on course for remarkable victory in European elections
Tony Benn was entirely ineffectual - and usually wrong
Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
The rise of Ukip: Study warns Labour that Eurosceptic party's electoral base now 'more working class than any of the main parties'
- 1 Is your name now 'banned' in Saudi Arabia?
- 2 Exclusive: World’s most pristine waters are polluted by US Navy human waste
- 3 Gender-specific books demean all our children. So the Independent on Sunday will no longer review anything marketed to exclude either sex
- 4 Missing Malaysia Airlines Flight MH370: Jet ‘hijacking’ began soon after take-off
- 5 'Missing Malaysia Airlines Flight MH370 plane found in Bermuda Triangle!' Viral Facebook links are profiting hackers
iJobs Money & Business
£35000 - £43000 per annum + Bonus and Benefits: Harrington Starr: A global lea...
£50000 - £60000 per annum: Harrington Starr: Linux Systems Administrator - UNI...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...