Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/new-model-adviser/article/a634723
Labour: Regulators must focus on simplicity
by Michelle Abrego on Nov 15, 2012 at 13:31
Regulators need to stop focusing on product transparency and instead work to make the financial services industry less complex, according to the opposition spokesman for the Treasury.
John Eatwell said the banking crisis and mis-selling scandals were not down to opaque products but the fact consumers did not understand what they were buying.
‘Complexity is the enemy of stability, it is complexity that is the enemy of future financial stability and the regulatory system is getting more and more complex,’ he said.
He said that not only have rules been made more complicated but the documents outlining them had grown larger as regulators tried to cope with understanding the cause of market failures.
News sponsored by:
Today's top headlines
Challenged by growing risk aversion?
Challenging financial markets over recent years have resulted in growing risk aversion among British savers and led many to seek safety in cash. Click here for more.
More about this article:
More from us
- Tisa lobbies FSA for 12-month delay to cash rebate ban
- FSA’s Percival: IFAs should worry about clients ahead of regulator
by Himanshu Singh on Dec 08, 2013 at 05:41