22 September 2009
Financial Services Industry is a “national and international
asset” says Lord Mayor
Any changes to the regulatory structure must be designed to
strengthen and help grow the financial services sector, not to
first paralyse and then shrink it
It is vital that we restore the public’s confidence in our banks
and emphasise the massive contribution they make to the well-being
of economies here and abroad
The UK has a strategic interest in the formulation of high
international standards and the Government must play a leading role
implementation of global and EU regulatory standards
Ian Luder, the Lord Mayor of the City of London, will this
evening provide a robust defence of the UK’s financial services
industry during the annual City Banquet at Mansion House.
Chairman of the FSA Lord Turner, will also be addressing the 300
politicians and industry representatives gathered for this
evening’s event.
The Lord Mayor, the global ambassador for the UK-based financial
services industry, will discuss the following issues:
On future regulatory reform:
“Any changes to the regulatory structure must be designed to
strengthen and help grow the financial services sector, not to
first paralyse and then shrink it.
“We all recognise that such changes are necessary but
‘punishing’ or somehow ‘reining in’ the financial services industry
is not the answer.
“I would call on all politicians, and other institutions charged
with regulation and supervision, to regard the financial services
industry in its true light, as a major national and international
asset – they are duty-bound to preserve the growth and
international competitiveness of this sector.
“Here in the UK we strongly believe that the interaction between
regulators and auditors must be strengthened and that we must avoid
the temptation to apply collateral regulation in sectors which are
already functioning as intended.
“Above all, once the necessary changes have been made, we must
resist constant tinkering with the system. Firms need to operate in
a business environment defined by certainty, clarity and
consistency.”
On the importance of the financial services industry:
“Unless the public’s confidence in the banks is regained the
whole of the financial services sector will be irreparably damaged
and this issue will continue to be used as a political football in
a match which could last until the next general election and
beyond.”
“Whilst the excesses and misjudgements of some have dismayed us
all, we need to remember that it is banking activity, international
banking activity, which makes the world go around. No other
industry has the potential to help lift so many people out of
poverty, especially in emerging economies.
“Banks and bankers do good, but the public remain sceptical.
What we need to do now is to restore the public’s confidence in our
banks and emphasise the massive contribution they make to the
well-being of economies here and abroad.
On this week’s G20 summit in Pittsburgh:
“The commitments agreed to at the G20 London Summit must be
acted upon and our drive to see them implemented must be
relentless.
“We must promote responsible and sustainable economic behaviour
and we have to have the courage to call attention to economic
nationalism wherever it rears its ugly head.
“The UK has a strategic interest in the formulation of high
international standards and I hope the British government will take
a leading role in the creation of an accountable, transparent and
sound system of international regulatory cooperation’.”
Ends
Notes to editors
A full transcript of the Lord Mayor’s speech is available to
download
About the City of London:
The City of London supports and promotes the Square Mile as the
world’s leading international financial and business centre and
provides local government and police services for workers,
residents and visitors. It also provides valued services to London
and the nation as a whole including management of Guildhall Art
Gallery, the Barbican Centre, the Central Criminal Court at Old
Bailey, 10,700 acres/4,240 hectares of open space (including West
Ham Park, the City Gardens, Hampstead Heath, Epping Forest), three
wholesale food markets and acts as London’s Port Health
Authority.
About Ian Luder:
Alderman Ian Luder is the Lord Mayor of London.