The IMA says regulation of the investment management industry has benefited both the industry and its clients and it is calling for “equally robust regulatory structures and regimes for the financial sector as a whole”.
It says future regulation will need to recognise that some parts of the banking system are essential to the functioning of a market economy, and address the challenge of reconciling this with the need for unsuccessful businesses to be allowed to fail.
IMA also warns that there is still an urgent need to restore confidence in the banking system if the current financial crisis is to be resolved and conditions need to be created in which banks can once again attract private capital.
IMA chief executive Richard Saunders says: “While the immediate focus will be on a coherent approach to the present crisis, it is not too early to consider a new regulatory framework. Regulation has served the investment management industry well over the years, and we would encourage the G20 to focus on initiatives that will improve investor protection and financial stability in the longer term across the entire financial services sector.
“Good governance will be an important part of this. Non-executive directors, auditors and investors will have their part to play. IMA welcomes this and will encourage its members to embrace reform.”