The asset management industry should create a "bold and ambitious" new product to help find a long-term, sustainable way of ensuring businesses survive once the coronavirus abates, according to Fidelity International CEO Anne Richards.
In a post on LinkedIn, Richards said the response so far to the crisis facing many businesses up and down the country, which has come in the form of emergency liquidity through loans and guarantees, was "an effective quick fix". "It is only a short-term fix though. Ultimately, excessive indebtedness will dampen future growth and productivity," she countered. "We need only look at the experiences of the West following 2008 and Japan in the 1990s to understand that a heavy debt hangover can have real economic consequences, and non-financial debt in the UK was already high coming into th...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
