It seems at every turn we are faced with new evidence that the standards of financial adviser are lower than customers have a right to expect. Of course, many of the tests advisers are failing are standards imposed by regulation, rather than what the business would have done in the absence of regulation.
But doesn’t that say something important about the financial services business? I’ve for a long time held the view that the parts of the financial services business which directly affect the public should have agreed professional standards as well as regulation. In fact, if their standards were good enough, the need for regulation would be much reduced. What have other professions done? They set up professional bodies to coordinate creation and ownership of their own standards. Isn’t that a model for us? The biggest challenge on this front is from those who believe business practice is a...
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