Launch of roadmap on regulatory framework for financial
services to benefit consumers and staff
31 March 2009
A new report launched today (Tuesday 31st March) by The
Financial Inclusion Centre has set out the need for radical
reform of the financial services industry and put forward proposals
for that reform.
The report entitled: ‘Reforming the Financial System’ was
commissioned by Unite the union in order to explore how the finance
world needs to be reformed so that it meets the needs of society
and prevent another similar crisis from occurring.
Derek Simpson, Unite Joint General Secretary said: “Staff
working in the financial services industry know better then most
the urgent need for major regulatory reform in the financial
services sector. The report published today must be considered by
the government and financial regulator in order to ensure that this
important sector of our economy is able to emerge from the current
crisis and is strong enough to compete in a global environment.
“Unite will continue to campaign to achieve a regulatory
framework that is strong and able to meet the needs of all
consumers, this includes the most vulnerable in society. Unless
there is a total overhaul of the finance industry the public
interest will continue to be ignored. We can not allow the senior
bankers to go back to business as usual.”
Mick McAteer, Director, The Financial Inclusion Centre said: “We
are in a new era of uncertainty caused by weak regulation and the
reckless behaviour of financial institutions that has put at risk
the savings, investments, pensions and jobs of millions of UK
citizens. But out of adversity comes opportunity. The report sets
out a series of radical, but pragmatic and necessary measures to
reform the financial system so it meets the need of society.
“Radical reform is needed given the scale of the financial
crisis, tinkering with the system is not an option.”
The report considers: international regulatory reform,
regulatory accountability, a new approach to regulation, governance
of financial institutions and the role of long term investors; and
bank restructuring.
- Ends-
For more information contact: Saba Mozakka, Unite press office
on: 020 7420 8916 or 07768 693 953
Notes to Editors
- To download the full
report of: ‘Reforming the Financial System’ please click
here
-
Click here to download the Executive Summary
- Please note the scheduled launch has now been postponed due to
a change in the parliamentary schedule. This will no-longer take
place on Tuesday 31st March 2009 in The House of Commons.
- Key quotes from the ‘Reforming the Financial System’
report:
“The relationship between regulators and regulated has become
dysfunctional. Financial markets have fallen victim to the
herd-instinct compounded by a sense of arrogance in the
infallibility of markets and financial market operators. But the
regulators who were meant to be regulating these markets have also
fallen victim to ‘group-think’ believing that the role of
regulators was to create the conditions for markets to operate, and
then take a step back to allow the informed ‘self-interest’ of
markets to police itself.”
“Moreover, responsible, sustainable behaviour is likely to
emerge if a more collective system of rewards is encouraged. The
concentration of large bonuses in the hands of a number of key
employees (the rain makers) distorts behaviour and puts the
financial futures and livelihoods of employees in the hands of a
powerful few with precious little accountability.”
“Indeed, the banks must be held to account for their role as
primary agents in almost wrecking the financial system (under
proper conditions banks can be the agents of sustainable wealth
creation – this is not an attack on banking or the City of London
per se). Our proposals are designed to better align the interests
of the banking system with the interests of society, consumers and
industry. But we must recognise that banks were agents of
destruction. The capacity for destruction vested in the banks was
given to them by society. We delegated the power to the banks and
failed to hold them to account so they exercised power
responsibly.”
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