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
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Digital Optimisation Executive - Marketing

£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...

Recruitment Genius: Financial Reporting Manager

£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...

Recruitment Genius: Payments Operations Assistant

£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...

Recruitment Genius: Telephone Debt Negotiator

£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...

Day In a Page

Sepp Blatter resignation: The beginning of Fifa's long road to reform?

Does Blatter's departure mean Fifa will automatically clean up its act?

Don't bet on it, says Tom Peck
Charles Kennedy: The baby of the House who grew into a Lib Dem giant

The baby of the House who grew into a Lib Dem giant

Charles Kennedy was consistently a man of the centre-left, dedicated to social justice, but was also a champion of liberty and an opponent of the nanny-state, says Baroness Williams
Syria civil war: The harrowing testament of a five-year-old victim of this endless conflict

The harrowing testament of a five-year-old victim of Syria's endless civil war

Sahar Qanbar lost her mother and brother as civilians and government soldiers fought side by side after being surrounded by brutal Islamist fighters. Robert Fisk visited her
The future of songwriting: How streaming is changing everything we know about making music

The future of songwriting

How streaming is changing everything we know about making music
William Shemin and Henry Johnson: Jewish and black soldiers receive World War I Medal of Honor amid claims of discrimination

Recognition at long last

Jewish and black soldiers who fought in WWI finally receive medals after claims of discrimination
Beating obesity: The new pacemaker which helps over-eaters

Beating obesity

The new pacemaker which helps over-eaters
9 best women's festival waterproofs

Ready for rain: 9 best women's festival waterproofs

These are the macs to keep your denim dry and your hair frizz-free(ish)
Cycling World Hour Record: Nervous Sir Bradley Wiggins ready for pain as he prepares to go distance

Wiggins worried

Nervous Sir Bradley ready for pain as he prepares to attempt cycling's World Hour Record
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific