|
 It seems that wrongly the European Commission still wishes to remove small businesses where there is an established big business option.
“Big is beautiful” and “Too big to fail” remain the favorite options apparently of the EC (and maybe Mr.barnier?). We tend to be under the impression that the EC doesn’t like independent intermediaries – bancassurers look better, as much as Stalin didn’t want small farmers.
On the consumers’ side - 62 % are of the opinion that the global financial crisis was caused by a failure to implement existing regulation.
It would be good at this stage to take a look at what went wrong and why.
It is obvious that the current rules-based regulatory approach was not able to keep up with the speed and innovation of the financial markets.
A principles-based structure complements tailored rules by adding needed guidance and flexibility to desired policy objectives.
Regulation by objective rather than function ensures that all products and institutions are over-seen based on identified risks rather than futile determinations of whether an instrument is a security, a future, or a swap.
I like at this stage to quote Michael Spencer, chief executive of U.K inter-dealer broker ICAP PLC stating that the national central bank would better serve as central supervisor: “Box ticking and compliance alone, however ingeniously devised, can never create an adequate framework for every eventuality”:
We can’t ‘agree more!
Vincent J. Derudder - Secretary General
February 2010
|
