IMA is calling for equally robust regulatory structures and regimes for the financial sector as a whole, and underlines the need to separate "good" assets from the "bad" within bank balance sheets.
IMA is calling for equally robust regulatory structures and regimes for the financial sector as a whole, underlining that regulation of the investment management industry has been to the benefit of both the industry and its clients.
In particular, future regulation will need to recognise explicitly that some parts of the banking system are essential to the functioning of a market economy, IMA states and underlines the need to separate "good" assets from the "bad" within bank balance sheets.
IMA acknowledges that the crisis cannot simply be regarded as a failure of regulation, and that there has also been a failure of other parts of the regime, including governance. The roles of non-executive directors, auditors and investors all need to be reviewed and lessons learnt for the future.
“It is not too early to consider a new regulatory framework”, Richard Saunders, Chief Executive of IMA said. “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”, he added.
IMA paper to G20 ministers
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