Regulation is making London lose ground to other jurisdictions, JP Morgan Asset Manager CEO EMEA Patrick Thomson has said.
He was speaking at the Investment Association’s annual conference on 20 June in London.
Thomson also said that rising costs are reducing London’s status as the premier international financial centre in the world.
Vanguard Europe managing director Sean Hagerty speaking at the same event added that “consumers are very confused and regulation is partly to blame”.
AXA Investment Manager UK CEO Marcello Arona agreed with both Thomson and Hagerty.
He said “regulation is getting more and more complicated” whereas it needs to provide “simplicity and clarity”.
Still, Arona was “confident” that creating dialogue with regulators can lead to a “better world” with improved regulation.
One piece of regulation that Hagerty agreed with was the Financial Conduct Authority’s (FCA) Retail Distribution Review (RDR) that was introduced on 31 December 2012.
Hagerty said that RDR “made things more transparent”.
Thomson described the ideal regulatory environment as he sees it.
“We do not want low standards, we still need a high level of regulation, but it should also be the right amount of regulation.”
A piece of financial regulation that has received a lot of attention is the Consumer Duty with the rules coming into effect on 31 July 2023.
It aims to set higher standards of consumer protection across all retail financial services.
Hagerty also spoke about artificial intelligence (AI) and said that the productivity gains from the technology are huge.
It also lowers the costs and is “still using humans at this early stage” in its evolution.
Arona also said that technology “will make asset managers more democratic” in the future.
Schroders global head of strategy and solutions Charles Prideaux had a strong message for delegates.
This was to “embrace technology” and that “AI is definitely part of that”.
Evidently New York overtook London some time ago – in 2018 according to Z/Yen Survey. According to Bloomberg NY still holds that title in 2023.
Thank you FCA and predecessor.
“Regulation is killing London’s role as top financial capital”
Yep.
Are they remotely repentent?
Nope
Much like Sir Humphrey’s “most efficient hospital” (ie the one with no patients in it), it doesn’t matter if there is nothing left to regulate, our regulations will be the safest in the world.
This is the mistake of 21 years of letting them get on with making their own playbook up entirely “independently”. They run riot with not just paperclip regulations, but duplicate paperclip regulations. Its not really the regulator’s fault, this is what they do, unrestrained. And any sort of “cost benefit analysis” or “competition” mandate you give them is ignored simply because they don’t understand either of them.
Covid and lockdown was a prime example of a risk averse blob, seeking to minimise recriminations on themselves and refusing point blank, to provide a cost benefit analysis despite many requests to do so.
The one time they did, it was a rush job 48 hour cut and paste job that was incoherent drivel.
There.
No chance for at least 6.5 years as Starmer has neither the commercial clue nor the balls to do anything either, by which time, like energy policy, myriad mickey mouse degrees, blah, blah etc, its too late.
What he said …
Very well put Bryan
It might help if the government were to hold the FCA to the standards clearly set out in https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/301133/file45019.pdf. This is supposed to have been statute, i.e. the law of the land but has never been enforced. As a result, the FCA has, from its inception, wilfully ignored it and remains an unbridled, self-serving and corrupt monster that routinely tramples roughshod over anyone or any body the dares to try to stand in its way.
The FCA would do well to look at its own guidance – safe to speak up – a good and open culture – clarity in communications – clarity in reports – accommodations for vulnerable customers – prompt service – proportionate reporting of management information – need I go on?
Trust in FS must be at an all-time low.
I can see regulatory failure in umpteen places, which asks the question – what happens come the 31st July and the Consumer Duty?
When we read in the pinks today IHT for the treasury is 13% up on last year, that’s £1.2bn in the first 8 weeks.
You have to say regulation is doing its job !!!
They …or should I say government do not want advisers or the city hoarding peoples money, they do not want advisers helping people to avoid tax etc etc etc
The FCA is way too political, it has become a dangerous governmental Rottweiler, no-one in power is worried about London being a financial hub of the world its a secondary aim.
Government revenue is paramount, has been for quite a few years rich get richer (tide that floats all boats and all that) even the black market is given a helping hand lots of big buck scams to get revenue in via the back door.
Some-one asked me the other day …why the senior directors of the FCA, all seem to have some sort of legal background or been moved in from other key governmental positions ?
Sometimes (I replied) the answer is so obvious, its dismissed …
Why does a organisation need so many lawyers when it is unaccountable, has the luxury of immunity.
The answer is so obvious its dismissed …
I think people might be forgetting why the Regulator was made ‘independent’ (The parenthesis is because Government still pulls the strings). They were made ‘independent’ because if anything went wrong the Government could always say “It isn’t us”. When things go well (do they ever?) the Government would take the credit. Great idea of Gordon’s.
Plausible denial…
OR …as the lawyers would put it
I can neither confirm nor deny
Sorry Harry you cant credit Gordon for this idea, he wouldn’t know a good idea if it smacked him in the chops
You can go back to the good ole days of the East India Trading Company (arguably the most powerful company at the time) … for this terminology of “independent” funny that the founders was a politician, and tax collector the other and Mayor of London, Alderman and ship owner …
One of the consequences of this over-regulation is rising prices – as we all know. But looking at other professions lawyers make hay charging for simple letters as the make the excuse that that have to money launder the client first – for a letter! Stockbrokers now add a compliance charge in addition to commission and stamp duty if applicable. And so it goes on. No wonder firms are leaving and I have read that about 3,000 millionaires are also leaving. Last one out, please turn off the light.
New regulations? The old rules of honesty and integrity are trashed, as in a New Normal.
A clever Imposter worked for the FOS.
When offered the hard evidence the FOS closed its eyes. I was dumbfounded….”at least look!”
When an Independent Assessor was offered it she not only closed her eyes to the offer, but added a lot of nasty spice and her own outrageous FAT LIE. She knows.
…….Follow the leader folk………..
FAT LIE? The Imposter finally proved herself with the fattest of all possible lies, supported by an Ombudsman, no less: another ‘leader’ leading!
But ‘they’ were privileged to hide truth. That’s normal, so the FOS fought hard and long for concealment. The FOS finally covered its rear with misleading regulation texts; then redactions.
AFTER an FOS investigator report, a Financial Institution’s lawyer saw a need to release crucial evidence, previously hidden.
A Saxo bank subsidiary had to release it
Call that mens rea……. a guilty conscience.
Corruption rules. It is apparently taught bv example in the FOS/FCA and renegade Financial Institutions.