Controlling the Providers

Abstract

Britain, and in particular London, has a long and (for the most part) illustrious history as an international financial centre. The business, professional and ethical standards expected of practitioners in banking, insurance, investment, and company financial administration have been the envy of the world which few countries have managed to emulate. This has not been achieved without the parallel development of a regulatory framework which, despite the measure of excellence normally achieved, has — it must be admitted — not always been equal to the task. Regrettably, recent years in particular have seen a spate of frauds, malpractices, misadministration and incompetencies among those in whom great trust has been placed. In situations where millions of pounds are entrusted to a few — by the many who know little of financial dealings — there is always the danger that there will emerge a few dishonest people who are determined to find loopholes in existing law and practice, and to use them to their personal advantage. The frauds of the past few decades, and the questionable practices which crept into certain areas of financial practice, have dealt such blows to the prestige and reputation of the financial services industry that it will take many years for ‘the City’ to recover.