View more on these topics

Standard Chartered: Banking and regulatory reform is backward looking

Standard Chartered chairman Sir John Peace says the current proposals for banking and regulatory reform are backward looking and should instead try to anticipate what might happen in the future.

Earlier this month, the Government published the draft financial service bill on banking reform to implement the recommendations of the Independent Commission on Banking, which proposed to ring-fence banks’ retail and investment operations.

Meanwhile, the financial services industry is in the process of switching to a “twin peaks” system of regulation, with the FSA being replaced with the Prudential Regulation Authority and the Financial Conduct Authority.

Speaking at a panel debate at the British Bankers’ Association’s annual conference in London last week, Peace said: “If we do have a crisis again it won’t be like the last crisis. So it is very important that all of the plans we put in place do not just deal with what happened in 2007-2008.

“I certainly think much of what has happened is looking backwards and not forwards.”

The panel, which included Royal Bank of Scotland chairman Sir Philip Hampton, Lloyds Banking Group chairman Sir Win Bischoff, HSBC group chairman Douglas Flint and Barclays chairman designate Sir David Walker also discussed the idea of setting up a banking standards board to uphold standards and with the power to strike off bankers.

Peace said: “I think the idea of adding a body like this is one that is worth exploring but the devil is in the detail. It is pointless creating a huge bureaucracy that has got no teeth and no purpose.”

Bischoff said the creation of a standards board would only gain public support if it were to strike off any banker which had acted inappropriately.

He said: “I think a standards board is something which many would be behind but I think the public will only think it works when there’s a tangible example of either someone being denied work or being sanctioned.”

Recommended

Lloyds Banking Group under investigation for Libor rigging

An American investigation into the Libor rigging scandal has significantly widened its scope to include nine more global banks including Lloyds Banking Group, according to reports. The FT reports that the New York and Connecticut attorney-generals have issued subpoenas to Bank of America, Bank of Tokyo, Mitsubishi UFJ, Credit Suisse, Lloyds group, Rabobank, Royal Bank […]

/w/p/v/Coins_UK_Currency_Newspaper_450.jpg

UK dividends hit new record in Q3 2012

Dividend payments in the UK hit highest quarterly total of £23.2bn, up 10.4 per cent in the third quarter compared with last year, according to Capita Registrars. Capita has increased its headline forecast for the full year by £300m, which would push the total dividends for the year to £78.6bn, including additional special dividends. This […]

2

Aifa refuses to reveal membership numbers

Aifa has refused to disclose the level of income brought in by annual subscriptions over the last year, saying only that it has seen a “small decline” in membership subscriptions. The trade body published its annual accounts for the year to 30 June this morning, which showed a pre-tax loss of £153,665, compared to a […]

FinaMetrica launches new version of its risk-profiling tool

FinaMetrica has launched a new version of its risk-profiling tool, enhancing its risk tolerance reporting and support materials. The changes have been made based on the feedback of around 5,000 advisers in the UK, Australia and the US. Risk profiles are now based on the clients of the 5,000 advisers studied, as opposed to the […]

The Perils of Passive Investing

The era of loose monetary policy created an environment that rewarded passive investors in the US. However, with the US raising interest rates for the first time since 2006, Felix Wintle explains why he believes active investing will be more important than ever. In the video Felix discusses: The rising cost of capital and its […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment