We must separate the good innovation from the bad

Christmas and New Year is my usual time to catch up on that enormous pile of ‘interesting stuff' that lies rotting in the corner of my office.

This year I found a rather old and dog-eared copy of political magazine Prospect from September, which featured a compelling round table discussion on how to tame global finance with Lord Turner from the FSA. In September, I had only noticed the headline aspects which focused on bankers pay and the failure to properly regulate the big banks. Digging further into the conversation, some thoughts emerged that will have huge implications for the asset management business. The core theme is that innovation in finance is not necessarily a good thing and regulators may have to distinguish betwe...