31st March 2009
G20 must not treat private client investment managers as banks APCIMS warns
As the heads of state converge on London to discuss global financial regulation, APCIMS will be looking closely at discussions around new regulation and its overspill, offshore centres reform, and the proposed European central regulator.
David Bennett CEO of APCIMS said:
“It is right that G20 should be focussing on global regulation of the financial services industry. It is always a risk that when regulation of banks is discussed our industry is dragged into the regulatory fray. We seek assurance that any reforms applying to our regulated firms are appropriate and proportionate. This need is more urgent than ever following the De Larosiere report, The European Commission’s proposals for implementing it, and in the UK the Turner review.
“Unlike banks, private client investment management and stock broking firms do not act as market makers, liquidity providers, deposits takers or lenders and do not pose systemic risk. A one size fits all approach treating all regulated firms as banks must be avoided. The retail investor’s confidence and trust in the market is vital for regaining economic and financial momentum. If small investment firms such as our members are over regulated the return of confidence could be severely stifled.
Off shore centres
“APCIMS would not welcome an increase in protectionism because it brings no enhancement to the economy. Excess focus on off shore centres could be a time wasting distraction from the real issues of coordinating a global regulatory response to reduce systemic risk.
European Regulators
“APCIMS recognises there must be identification of global and European levels of systemic risk but we do not believe there should be a pan European regulator for our sector.
“We do not however believe it is in the interests of our members to have an additional Eurowide regulator remote from them and their markets. We need thoughtful, targeted regulation, such as counter cyclical capital requirements for banks, which will ensure the problems will not recur. Building another super regulatory institution will not of itself necessarily address the issues that gave rise to the crisis.”
- ENDS-
For more information please contact:
Dirk Paterson, Head of Communications, APCIMS
on 020 7448 7100
Mobile: 07944 866 286
Email: dirkp@apcims.co.uk
Notes to editors:
APCIMS
- More than 12 million people in the UK currently invest directly in stocks and shares and other financial instruments to secure their financial futures
- APCIMS represents over 140 firms all over the UK who deal primarily in stocks and shares on behalf of individuals and the institutions in which we have our money
- Around £400 billion of the country’s wealth is under the management of our members
- Our aim is to ensure that the regulatory, tax and other changes across Europe minimize impact on the investment community
- We want to lead the debate on regulation in Europe, with UK regulators and with British parliamentarians to make sure consumers are protected while at the same time our industry flourishes in the UK