Regulatory system failure to blame for crisis
Failure of the regulatory system has once again been identified as a central cause of the global financial crisis by a financial services industry executive.
Sitting on a panel at the Conference of Major Superannuation Funds (CMSF) on the Gold Coast, Doug McTaggart, chief executive of institutional funds manager QIC, argued the current volatility wasn't the result of a breakdown in the capital system.
"We don't need a new system. The problem was regulation failure," McTaggart said, calling for better regulation in the financial sector.
"You can regulate against some abnormal forms of behaviour."
McTaggart also rejected the notion it was an issue of housing deleveraging.
"This recession will end when households feel comfortable spending again," he said.
Later in the plenary, McTaggart argued that we are "creating big problems for the future", including potential inflation and the overhang of debt burdens.
"I think this will be short, sharp and deep," McTaggart said, adding that he feels we will see trend growth in the next year.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
