The Great Financial Crisis still casts a shadow in the industry, eight years on. The fear remains that it might not be the main event, but simply advance warning of something bigger. After two decades of accumulated bank leverage and a few years of irresponsible lending, the remedy has mainly been sticking plasters. Regulation has […]
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Tag Archives: regulation
Tougher regulation needed for UK listed company directors
September 7, 2015 
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A gap has opened up in UK regulation, leaving investors exposed to Companies Act and accounting issues without a clear remedy. Despite all the focus on governance and stewardship, investors are still getting nasty surprises. Tesco and Quindell are perhaps just the highest profile of those involved in further investigations. Making the stockmarket safer should […]
Continue reading Illusory liquidity and other risks from misguided central bank policy
July 7, 2015 0 Comments
Does liquidity matter? Not, it seems, to regulators and central banks. Little thought is being given to the global systemic risk created by today’s liquidity illusion. In a world awash with money, trading is actually drying up, with little depth in many markets. Entering positions is easy, but the exit doors could prove surprisingly narrow. […]
Continue reading Audit firm governance needs to reflect the public interest
June 10, 2015 0 Comments
Is audit quality good enough? In large part that must depend on how well firms that carry out audits are run, and the Financial Reporting Council has opened a consultation on its governance code for such firms. The Audit Firm Governance Code dates to 2010, when the FRC introduced it to address audit problems from […]
Continue reading Risks are growing in big equity and bond funds
April 16, 2015 0 Comments
Money printing and the current stockmarket boom are increasing systemic risk, pushing problems into new areas. Now the questions is; are some asset managers too big to fail? The financial crisis highlighted risks in banks and insurance, but other areas have been overlooked. Finally, regulators are beginning to recognise risks in the investment sector, and […]
Continue reading When will the ECB crack down on banks’ related party lending?
September 22, 2014 0 Comments
Will the European Central Bank’s asset quality review spot all the problem banks? Asset quality is a risk factor in the European Banking Authority (EBA) Comprehensive Assessment, but regulators may be missing a key underlying pattern in failure. Banco Espirito Santo has highlighted the issue of inter-related lending: loans to shareholders, affiliates and related parties. […]
Continue reading Private Equity : the tricks of the trade
July 7, 2014 0 Comments
Private equity has a serious image problem – an overhaul of its practices is overdue. The industry has always been seen as hardheaded, but now there is a growing perception of a callous attitude to other stakeholders. Private equity now faces attacks from regulators, investors and politicians. Against a weaker economic background, a re-run of […]
Continue reading How to cut investment costs – and what bits to keep
June 2, 2014 0 Comments
Investors might be surprised at how big an impact expenses can have in the long term, and how much is still hidden. Yet there are ways to cut costs, as well as some apparent savings that are likely to be a false economy. “Do costs matter?” might look a simple question, but is often confused […]
Continue reading Crowdfunding : a real threat to banks – with a little help
May 27, 2014 0 Comments
With small business lending by banks still weak, crowdfunding could assist broader based economic recovery. But the slow pace of regulatory reform is limiting its potential. Banks still fail to view the sector as a strategic threat and regulation is painfully slow. With just a little more encouragement from politicians and regulators, crowdfunding could represent […]
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Behavioural Edge 
The Problems with MiFID
Years in planning and one year late, the European Union’s wide-ranging new MiFID II regulation is still going to catch-out much of the industry. Although European, it will impact global asset managers, and may herald change across the industry. No-one yet quite knows how it will work in practice. The aim – to fully and […]
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