View more on these topics

Turner wants flexibility in Euro regulation

FSA chairman Lord Adair Turner has warned that European regulation must comprise the right mix of financial integration and flexibility for national powers.

The International Monetary Fund has called for progress towards a pan-eurozone approach to issues such as the orderly wind-up of failed banks, compensation schemes and bank supervision. Speaking at a Central Bank of Ireland conference in Dublin last week, Turner said there is a “remorseless logic” to the argument that successful monetary union needs greater fiscal integration.

But he argued this needs to be tempered with the flexibility for countries to act on a national level where they feel it is necessary, pointing out recent credit and property booms were concentrated in specific countries of the eurozone but largely absent in Germany.

He said small countries with big banking systems, such as Ireland, need to be able to set capital requirements above and beyond those dictated at a European level.

Turner said: “As the IMF has argued in its latest global financial stability report, even if the path to a better system is inevitably a long one, the eurozone needs to set out a road map which leads to a sounder long-term design. That sounder design will need in some ways to be more integrated but in some ways not.”

Cube Financial Planning co-founder Mike Godfrey says the UK should either embrace pan-European regulation or pull out of the EU completely.

He says: “Promoting the ability to be able to act on a national level seems to go against the objectives of a united Europe. You are either part of the pan-European proposals or you are not, there cannot really be any middle ground.”

Recommended

Aviva chief waives rise as provider announces pay review

Aviva chief executive Andrew Moss is to waive a pay rise as part of a move from the provider to quell shareholder anger over executive pay. In a stock exchange announcement, Aviva says it is to review how it sets executive pay after a number of shareholders voiced concerns about pay levels following the publication […]

Cazenove to go short duration for high income launch

Cazenove’s Peter Harvey plans to be “significantly underweight duration” in the new High Income fund, which is slated for launch next month. Harvey says if market conditions remain as they are, the high-yield bond fund will be launched with a far shorter duration than the 3.7 years of its benchmark, the Bank of America Merrill […]

Soutar picked to head operations at Virgin Money

Virgin Money has recruited Capita’s Gordon Soutar as operations director with Brian Brodie becoming customer and distribution director. Soutar joined Capita’s life and pensions arm as operations director last June and was previously HML’s chief operating officer. Brodie will be responsible for all Virgin Money’s distribution channels, including intermediary sales, branches, contact centres and online […]

43

Nic Cicutti: Are doctor’s orders right for IFAs?

One of the side-effects of writing this column is that I often get inveigled into having discussions with IFAs who write to me with responses to my comments. Generally, I try to shy away from responding at length, otherwise I would never do anything else. But a few weeks ago, I saw a reply to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com