FSA chief: Too costly to prevent all financial malpractice

clock

FSA chairman Lord Adair Turner said the regulator is reviewing its approach to supervision following the LIBOR scandal, but said it would cost too much to prevent all malpractice in the industry.

In a speech given to Bloomberg entitled ‘Banking at the Cross-Roads’, Turner (pictured) addressed the recent scandals in the banking sector, and said the City watchdog has been questioning whether its traditional approach to supervision is still tenable. “In the past, it is fair to say the FSA did tend to assume that relationships in wholesale markets should be governed largely by a caveat emptor, market discipline approach. "But increasingly we are aware that at the end of the chain of wholesale institutional relationships there will typically lie a retail consumer. And that shoddy w...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Wealth managers

The existential threat at the heart of Britain's biggest wealth manager

The existential threat at the heart of Britain's biggest wealth manager

Fees made St James's Place rich but now risk toppling the firm

Chris Newlands
clock 15 May 2024 • 10 min read
St James's Place results lay bare cost and charging challenges against market tumult

St James's Place results lay bare cost and charging challenges against market tumult

'Structural opportunity' for advice industry

Hope Coumbe
clock 28 February 2024 • 3 min read
SJP CIO Onuekwusi: Retail investors lack appropriate structure to access private markets

SJP CIO Onuekwusi: Retail investors lack appropriate structure to access private markets

Open-ended structures 'have to work'

Valeria Martinez
clock 01 December 2023 • 2 min read
Trustpilot