APCIMS follows Davies' lead

FSA chairman Howard Davies' call earlier this week for regulation needs to be balanced against the ability of the financial services industry to bear the costs of compliance has been echoed by the Association of Private Client Investment Managers and Stockbrokers at its annual conference.

APCIMS chief executive Angela Knight says that regulators should not go overboard in their reaction to recent scandals, increasing the costs of regulation to levels that jeopardise "innocent firms and their clients".

Her thesis is that increasing regulation is providing diminishing returns in terms of detecting and disarming fraud, even as costs continue to rise.

Plans to set in place complicated regulatory regimes to detect fraud committed by the few may have the effect of reducing the industry's ability to provide services at reasonable cost.

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