JOHN McFALL, CHAIRMAN of the influential Commons Treasury select committee, has joined critics of the FSA's "light-touch" regime for overseas investment funds, according to the FT.
Mr McFall is calling on the watchdog to close a “gaping hole” in its defences against consumer abuse, and has asked the regulator to reverse its decision allowing hedge funds and other investment companies to list shares in London under less onerous rules.
In a letter to John Tiner, FSA chief executive, he warned that exempting foreign groups from more rigorous standards applying to UK investment trusts would result in “vital regulatory protections being abandoned”.
He said the move had also put UK players “at a disadvantage”.
HIGH STREET BANKS are set to use a crackdown on penalty fees as an excuse to end free banking for their best customers and boost profits by stealth, reports The Times.
The Office of Fair Trading (OFT) is set to rule within weeks that punitive overdraft charges are illegal, following a clampdown on credit card fees last year. The banks are drawing up plans to charge for current accounts to recoup the costs of the crackdown — ending 23 years of free banking in Britain.
However, research from investment bank Credit Suisse, is said to have exposed this argument as a lie, according to the Times as the banks are said generate revenues of £6.5 bn from current accounts, and three-quarters of this comes from paying derisory rates, with only £1.2bn from overdraft fees, so they could easily absorb the cost of the OFT crackdown.
THE FOUNDING PARTNER of one of the top five global private equity houses has hit back at the heightened public criticism of the industry and its methods, according to The Telegraph
David Bonderman, who founded Texas Pacific Group just over 15 years ago, told almost 1,700 assembled industry professionals that in spite of increased media coverage of the industry, it remained a "rounding error" in the capital markets.
Mr Bonderman, whose firm has been involved in the take-private of Australian flag carrier Qantas and the refloatation of Debenhams in the last 12 months, gave the SuperReturn conference in Frankfurt something of a reality check.
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