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‘Dual regulation caused Rock slide’

The Northern Rock debacle would not have happened under any other regulatory regime and can be blamed on the fudge created by dual regulation, according to a leading LibDem business voice.

Speaking at a fringe event at the LibDem Conference this week, Liberal Democrat business forum chairman Paul Marshall said the deal drawn up in 1997 to supervise the banks has created a regulatory landscape that has allowed these events to unfold.

Marshall, who jointly runs Marshall Wace, one of the UK’s biggest hedge fund busin-esses, said giving the Bank of England systemic responsibility for the stability of the banking system while giving the FSA responsibility for individual banks was a wrong move.

He said it has put the FSA in a difficult situation, making it harder to monitor the market and justify decisions to bail out or support a bank.

Marshall, who co-edited the LibDem’s famous orange book of economic policies, said in the US, regulators have been able to address individual firms’ problems associated with the current market turmoil much faster.

He said: “The way banks are supervised has created some very difficult issues. I believe this mess would not have happened under any other regulatory regime.”

Shadow vice-chancellor Vince Cable said the FSA, Bank of England and the Government have shown an underlying patronising attitude to the public in their statements regarding the Rock affair.

Speaking at a Citizens Advice fringe event, Cable said: “These people are not idiots who need to be told not to panic. Many are financially savvy. They can see for themselves there is a problem and have decided to act. If banks do not trust each other, why should the public trust them?”


Crackdown looming after the Rock fiasco

The panic over Northern Rock could result in the Government placing limits on how much funding can come from the money markets.Mehrdad Yousefi, director of distribution and sales at Wave and former head of intermediary mortgages at Alliance & Leicester, says he expects the Government to change the funding regime to stop a similar crisis […]

Consumer panel calls for focused with-profits advice

The Financial Services Consumer Panel is calling on the FSA to introduce a limited advice service for with-profits policyholders to be provided through specialist individual firms and trade bodies.The FSCP has released a report on the 8 million with-profits customers who cannot get independent advice on their policies because their funds are too small to […]

Bankhall conference: Bankhall launches Capita-led Portavista platform

Bankhall has unveiled the details and name of its Capita-led platform at its annual member conference in Cannes today.Portavista, which Bankhall chief executive Peter Mann stresses is not a wrap, will offer 1,200 funds from 56 fund groups and a Sipp and personal pension offered by Aegon, in its initial stage.This is the first time […]

Encounters of the third kind

I must admit that after Skandia brought out global best ideas and then UK best ideas, I thought it might have trouble thinking up another fund for a third launch. I have to hand it to Skandia, the new UK strategic best ideas fund looks to be yet another truly innovative fund.Yet again, the focus […]


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