And, while acknowledging that it should be proportional, the Investment Association’s interim chief executive officer was clear that: “the post-financial crisis social contract hinges on transparency and accountability.”
Speaking at a recent Morningstar conference in London Sears said that just as the regulatory landscape has evolved dramatically post-financial crisis so too have the expectations imposed on asset managers and regulators from within the industry and externally by the wider public. And, while industry professionals and regulators have come a long way in meeting these edicts, he said it is easy to forget how rapidly things move.
“Six years ago, there was no FCA. The term ‘shadow banking’ had only just been coined. There was no AIFMD and Dodd Frank had not passed.” There has been a “paradigm shift in the way that regulators look at transparency, one which demands a different set of narratives and ways of sharing data.”
But, while the change has been swift and dramatic, he dismissed the notion that it has been stifling for the industry. Indeed, he said, increased regulation makes for a more creative and competitive environment. “Regulation allows firms to distinguish themselves from their competitors and rise above the standards of the day,” he said.
