REGULATION ROUNDTABLE
What, if any, new regulation should ROGGE – Banks and investment banks
now be introduced? have continuously (and will continue
THE PANEL
to do so in the hope they ‘buy low and
SANTS – Th e FSA has an important sell high’) fooled the regulators by
role, alongside the Treasury and the moving assets away from their
Bank of England, in contributing to regulatory eyes! ‘Off Balance Sheet’
HECTOR SANTS
fi nancial stability. As supervisor of should be prohibited; if it is risk free Chief executive,
individual institutions we must ensure as management used to say, then why
Financial Services Authority
that we are able to identify systemic not put these transactions on their Hector Sants was appointed chief
risks posed by the banks we regulate, balance sheets?
executive of the Financial Services
Authority (FSA) in July 2007. He
and respond to those on a bank-by-
joined the FSA in May 2004 as
bank basis and, with our Tripartite URWIN – Leverage and incentives are
managing director, wholesale and
colleagues, look at the fi nancial system the two main candidates for
institutional markets. He was
formerly chief executive offi cer of
as a whole. Th e Banking Bill, now in governments to act on, both are Europe, Middle East and Africa for
the House of Commons, will put on a diffi cult to scope and tackle. We have
Credit Suisse First Boston, and has
statutory basis the Bank of England’s been through a period of light touch
extensive experience of the
wholesale markets both in the UK
role in contributing to fi nancial regulation which was underpinned by and internationally.
stability, and we will continue to work the belief that the ‘market knows best’,
closely with the Bank and Treasury. Th e however given the extent of the
FSA and the Bank have worked closely industry’s failings this is being
and constructively during the crisis, challenged and will give way to a
OLAF ROGGE, ASIP
Chief executive,
most recently on the bank new period of regulation defi ned by Rogge Global Partners
recapitalisation plan. Key to this the belief that the market cannot
Olaf Rogge, ASIP, is chief executive
successful partnership has been clarity be trusted. and founder of Rogge Global
of responsibility: the FSA for Regulation can be viewed either as a
Partners, which was formed in
supervision of and decision-making in public good to be welcomed or a
1984. His career began at M.M.
Warburg-Brinkmann, Wirtz & Co
relation to individual fi rms and for spectre to be feared and the enormous in Hamburg. He then moved to
seeking private sector solutions – and challenge is to ensure it is eff ective and
W. Greenwell, fi rst in London,
then in Edinburgh, before joining
the Bank for the provision of liquidity. not stifl ing. Most industry players fear
Lombard Odier, the Swiss bank.
Th e Bill will give the authorities a regulation because of the costs of
range of tools to resolve a bank that compliance and the unintended
were to fail in future. Our role as consequences. While valid these must
banking supervisor is to take the be weighed against the consequences of
ROGER URWIN
Global head of investment
regulatory decision that a bank is failing the systemic fault lines, such as
content, Watson Wyatt
and is unlikely to recover and to incentives and leverage, which will not
recommend to the Bank of England simply be addressed by market forces.
Roger Urwin joined Watson Wyatt
as a partner in 1989 to head up the
which of the resolution tools – e.g. Th erefore, we anticipate there will be fi rm’s UK investment consulting
transfer of a bank’s business to a private greater regulation in future which will
practice. He took on the role of the
sector purchaser, temporarily to a Bank attempt to diminish the likelihood of
fi rst global head of practice when
this was formed in 1995. His role
of England controlled bridge bank, or another black swan created by has lately specialised in helping
into temporary public ownership – unacceptable fi nancial practices. It can
Watson Wyatt to globalise its
consulting activities and increase its
would be appropriate. And once a bank be seen as the fi nancial sector equivalent
thought leadership activities
is placed into the resolution regime, the of Sarbanes-Oxley. Th at took around
through the thinking ahead group
FSA will continue to supervise it in the eight months to craft and complete.
(TAG). He sits on the Board of
Governors at CFA Institute.
usual risk-based way. Th is will probably take a bit longer.
“There are too many senior bank executives left who think of this
as a great buying opportunity by leveraging up their balance sheet
with the (unintentional) help of government money” ROGGE
WWW.CFAUK.ORG PROFESSIONAL INVESTOR 9
08-908-9 roundtable.indd 9roundtable.indd 9 27/11/0827/11/08 17:08:5317:08:53
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76