Asset Management and Financial Stability: 10 Years on from the Crisis.
Held on Thursday, December 6
With Support from ICI Global
Paul Schott Stevens (ICI Global)
Peter Andrews (Oxera)
Philip Warland (Kreab)
Over the last ten years, a lot of brainpower has been directed at understanding what caused the Crisis – and how to prevent (or, more realistically, limit) the next one. Regulation has materially changed the financial markets: banks have shrunk relatively speaking, while central banks and ‘Other Financial Intermediaries’ (chiefly investment managers and captive investment funds) have taken up the slack. This is especially true in the eurozone, where central banks and OFIs now hold nearly half of the area’s financial assets.
In principle, this is what was meant to happen. Reducing the leverage of banks, and replacing excessive maturity transformation by intermediaries with more direct holding of assets, were both intended to improve the overall health of the system. But there has always been a concern that financial intermediation outside of banking could introduce new risks into the financial system
Whether or not these fears are well-grounded (the Financial Stability Board appears sanguine for now, the ECB less so), there is the undeniable fact that the biggest asset managers are now very big indeed. At least one of the major players now lists more assets under management than the Federal Reserve.
So where are we really? To kick off a discussion of the issues, and what (if anything) should be done, we are delighted to welcome back Paul Schott Stevens. Paul is the President and CEO of the Investment Company Institute, a global trade body representing the interests of regulated funds with a combined $30 trillion under management. He has been with the ICI for 18 years, and previously served as a national security and defence adviser to the White House.
But he won’t (I hope) have things all his own way. Joining us to lead the response will be:
Peter Andrews, senior adviser at Oxera Consulting. Until 2017, Peter was chief economist at the FCA (and, prior to that, at the FSA). He has represented the UK at the Basel Macro Assessment Group, the FSB group on stock lending and repos, and the IOSCO committees on risk and emerging risks.
Philip Warland, senior adviser at Kreab in Brussels and at the Investment Association in London. Philip spent twenty years at the BoE (latterly as Chief Press Officer), and ten years as Director General of the Association of Unit Trusts & Investment Funds (now the Investment Association), and along the way has held senior positions with Standard Chartered, PwC and Fidelity International.
If you (or a colleague) would like to join us for what I am sure will be a lively discussion, please let us know by emailing email@example.com or calling the CSFI on 020 7621 1056. Wine, refreshments and sandwiches will be available.