Martin Davis: It's crunch time for networks

Two paragraphs in the FSA’s recent Retail Conduct Risk Outlook 2011 seemed to take the network sector by surprise. But was anything the regulator highlighted really that unexpected? Under the heading “Systems and controls weaknesses in the network model”, the FSA report first stressed that: “A number of networks are under considerable strain, with continuing pressure on income and low levels of profitability.” In the current economic environment, and with multiple regulatory financial strains to bear, that is, and remains, a statement of fact. The FSA’s next point however, was more...