Super-SIB will face problems, warns Imro

Phillip Thorpe, chief executive of Imro, the fund managers' watchdog, warned yesterday that Labour proposals for a powerful single regulatory body, dubbed "super-SIB" by the City, risked creating a "massive bureaucracy".

Mr Thorpe said the enlarged Securities and Investments Board (SIB), headed by Howard Davies, which would swallow up his own organisation, offered the prospect of a simpler, more integrated form of regulation.

"There are some gains to be made from such a move, the elimination of gaps and overlaps, the levelling of unlevel playing fields, the more efficient use of resources and so on," Mr Thorpe said. "There are also some predictable concerns to be recognised: particularly that this could create a massive regulatory bureaucracy, unable to respond to the rapid change of the markets, or given to seeking common solutions where previously bespoke arrangements best accommodated investor and business needs."

Imro is part of a project team set up by the SIB and which includes the Bank of England working on plans that will be submitted to Gordon Brown, the Chancellor, by the end of July. Mr Brown announced plans to pass supervision of the banking community from the Bank of England to the SIB within days of Labour winning the General Election.

The second phase will see other self-regulatory organisations, such as Imro, the Securities and Futures Authority (SFA) and the Personal Investment Authority (PIA), folded into the SIB within the next three years.

Mr Thorpe stressed that he believed Mr Brown would be "on guard" to avoid the potential pitfalls in his proposals.

He said: "The regulator must be, and must be seen as, independent in its operation and must have the knowledge, involvement and support of the industries it seeks to regulate. It must also be open and accountable if it is to secure the confidence of investors and those who it regulates."

The Imro chief executive's comments were made as the regulator published the annual report on its activities. The regulator said it had 44 investigations in hand at the end of March 1997 while 43 disciplinary actions had been taken during the year, up 26 per cent from last year.

In the 12 months to April 1997, Imro levied more than pounds 3.5m in fines and investigation costs from its members, up from pounds 835,000 the previous year. That total did not include the pounds 2m, plus pounds 1m in costs, levied in April on Morgan Grenfell, the fund management group owned by Deutsche Bank, over the irregular trading activities of its rogue fund manager, Peter Young.

Imro said yesterday it had been successful in ensuring that nearly all pensions mis-selling cases in which its members were involved had been reviewed.

Start your day with The Independent, sign up for daily news emails
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

SThree: Talent Acquisition Consultant

£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...

Recruitment Genius: Experienced Financial Advisers and Paraplanners

Negotiable: Recruitment Genius: This extremely successful and well-established...

Guru Careers: FX Trader / Risk Manager

Competitive with monthly bonus: Guru Careers: We are seeking an experienced FX...

Day In a Page

Seifeddine Rezgui: What motivated a shy student to kill 38 holidaymakers in Tunisia?

Making of a killer

What motivated a shy student to kill 38 holidaymakers in Tunisia?
UK Heatwave: Temperatures on the tube are going to exceed the legal limit for transporting cattle

Just when you thought your commute couldn't get any worse...

Heatwave will see temperatures on the Tube exceed legal limit for transporting cattle
Exclusive - The Real Stories of Migrant Britain: Swapping Bucharest for London

The Real Stories of Migrant Britain

Meet the man who swapped Romania for the UK in a bid to provide for his family, only to discover that the home he left behind wasn't quite what it seemed
Cheaper energy on the way, but it's not all sunshine and rainbows

Cheaper energy on the way, but it's not all sunshine and rainbows

Solar power will help bring down electricity prices over the next five years, according to a new report. But it’s cheap imports of ‘dirty power’ that will lower them the most
Katy Perry prevented from buying California convent for $14.5m after nuns sell to local businesswoman instead

No grace of God for Katy Perry as sisters act to stop her buying convent

Archdiocese sues nuns who turned down star’s $14.5m because they don’t approve of her
Ajmer: The ancient Indian metropolis chosen to be a 'smart city' where residents would just be happy to have power and running water

Residents just want water and power in a city chosen to be a ‘smart’ metropolis

The Indian Government has launched an ambitious plan to transform 100 of its crumbling cities
Michael Fassbender in 'Macbeth': The Scottish play on film, from Welles to Cheggers

Something wicked?

Films of Macbeth don’t always end well - just ask Orson Welles... and Keith Chegwin
10 best sun creams for body

10 best sun creams for body

Make sure you’re protected from head to toe in the heatwave
Wimbledon 2015: Nick Bollettieri - Milos Raonic has ability to get to the top but he must learn to handle pressure in big games

Nick Bollettieri's Wimbledon files

Milos Raonic has ability to get to the top but he must learn to handle pressure in big games
Women's World Cup 2015: How England's semi-final success could do wonders for both sexes

There is more than a shiny trophy to be won by England’s World Cup women

The success of the decidedly non-famous females wearing the Three Lions could do wonders for a ‘man’s game’ riddled with cynicism and greed
How to stop an asteroid hitting Earth: Would people co-operate to face down a global peril?

How to stop an asteroid hitting Earth

Would people cooperate to face a global peril?
Just one day to find €1.6bn: Greece edges nearer euro exit

One day to find €1.6bn

Greece is edging inexorably towards an exit from the euro
New 'Iron Man' augmented reality technology could help surgeons and firefighters, say scientists

'Iron Man' augmented reality technology could become reality

Holographic projections would provide extra information on objects in a person's visual field in real time
Sugary drinks 'are killing 184,000 adults around the world every year'

Sugary drinks are killing 184,000 adults around the world every year

The drinks that should be eliminated from people's diets
Pride of Place: Historians map out untold LGBT histories of locations throughout UK

Historians map out untold LGBT histories

Public are being asked to help improve the map