Category Archives: Deliverables

Report: FinCris Closing Conference at the Shard, London, June 17th 2015

The following report sets out the schedule of the closing conference for the FinCris project which was held at Warwick Business School’s facility at the Shard on 17th June 2015. It summarises the speakers and the subjects they covered and, where available, includes the slides presented and pictures of the sessions.

In addition, under the 1335 session (in which the investigators for the project summarised findings to date), a brief outline of those findings, which was distributed to participants, has been included.

Reform of the UK’s financial sector

Promoting stability, ethics and financial inclusion 

Wednesday 17th June 2015

Warwick Business School at The Shard, 32 London Bridge Street, London SE1 9SG

10.00 – 10.05        Chair’s opening remarks

Lord Turnbull, former Member, Parliamentary Commission on Banking Standards

10.05 – 10.25        From crisis to confidence – financial sector reform since 2007

Discussion of the regulatory and legislative changes that have taken place in the UK’s banking system since 2007 – their impact, unintended consequences and the way ahead for regulation.  

Martin Wolf, Associate Editor and Chief Economics Commentator, Financial Times and former Member, Independent Commission on Banking (2010-2011)

Dr Thomas Huertas, Partner and Chair, Global Regulatory Network, EY

Download (PDF, 414KB)

10.25 – 10.50        Next steps for regulation of UK financial services

Christopher Woolard, Director of Strategy and Competition and Member, Executive Committee, Financial Conduct Authority

Questions and comments from the floor with Martin Wolf, Chief Economics Commentator, FT and former Member, Independent Commission on Banking (2010-2011) and

Dr Thomas Huertas, Partner and Chair, Global Regulatory Network, EY

 

10.50 – 11.15        Strengthening EU banking sector resilience: Basel III implementation

                                Piers Haben, Director of Oversight, European Banking Authority

Questions and comments from the floor

 

11.35 – 12.25        Next steps for regulation of UK financial services – taxation, structured investment vehicles and stateless income

What is the case for levelling the taxation playing field between debt and equity financing – and what would be the challenges of enacting a change? What would be the advantages and disadvantages of different approaches to the use of the taxation system as a means of regulation of the financial sector, e.g. the EU’s Financial Transaction Tax (FTT) vs. a Financial Activity Tax (FAT) vs. extending VAT on financial services? How will the Eurozone FAT impact the UK? What would be the impact on the UK’s international competitiveness of altering taxation policy? What are the emerging options for regulators to address ‘structured investment vehicles’ and other ‘off-book’ schemes? What can be done to counter financial institution’s ‘stateless’ income? With its significant contribution to the UK economy is the financial sector too important to regulate fully?

Fergus Harradence, Deputy Director, Corporate Tax, Business and International Tax Group, HM Treasury

John Vella, Associate Professor, Centre for Business Taxation, University of Oxford

Rob Fontana-Reval, Head of Tax & Fiscal Policy, CBI

Questions and comments from the floor

Download (PDF, 968KB)

 

12.25 – 12.30        Chair’s closing remarks

Lord Turnbull, former Member, Parliamentary Commission on Banking Standards

 

13.30 – 13.35        Chair’s opening remarks

Rt Hon David Davis MP

 

13.35 – 14.00        Responsibility, taxation and financial exclusion after the financial crisis’

Perspectives from the FinCris research project on the ethics and culture debate as well as discussion on the implications to society and regulation of the financial crisis.

Professor Tom Sorell, Professor of Politics and Philosophy, University of Warwick

Professor Karen Rowlingson, Professor of Social Policy and Director, Centre on Household Assets and Savings Management (CHASM), School of Social Policy, University of Birmingham

Professor Andy Mullineux, Professor of Financial Economics, Bournemouth University

Questions and comments from the floor

Download (PDF, 99KB)

14.00 – 14.10        Improving banking standards: a practical approach

Alison Cottrell, Chief Executive Officer, Banking Standards Board

 

14.10 – 15.00        Roundtable: a way ahead for ethics and culture

What are the emerging ways for regulators and financial institutions to ensure ethical standards within the UK financial services? Do the financial rewards for profit making within financial institutions affect ethical decisions? What has been the discernible impact, if any, on the day to day operations within the banking industry of regulatory change? What lessons are being taken forward from the LIBOR rate fixing for future approaches to prevent and address unethical behaviour and encourage those with knowledge of practices to speak out? With unethical behaviour within financial institutions often, rightly or wrongly, cited as an underlying cause of the financial crisis, why have so few individuals been held to account? Is the approach from Metrobank and Handelsbanken able to be replicated across the financial services sector – what would be the impact on the UK’s global competitiveness? 

Philip Augar, Author and Independent Non-Executive Director, TSB Bank

Ed Mayo, Secretary General, Co-operatives UK

Nitin Mehta, Managing Director, CFA Institute

Philippa Foster Back, Director, Institute of Business Ethics

Questions and comments from the floor with Alison Cottrell, Chief Executive Officer, Banking Standards Board

 

15.00 – 15.25        Coffee

 

15.25 – 15.45        How do we make sure financial markets work for society, not just the few?

Mick McAteer, Director, Financial Inclusion Centre and Non-Executive Director, Financial Conduct Authority

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15.45 – 16.25        Addressing financial exclusion – balanced risk, short-term credit and the role of Government, regulators and industry

Has the increased regulation of the financial sector exacerbated financial exclusion? What should be the role of Government and regulators, if any, in promoting financial inclusion? How can financial service providers balance risk while promoting financial inclusion? How far are the symptoms of financial exclusion rather than the causes being tackled? Are short-term credit providers offering a safety net for those in society excluded by the banks? What are the likely consequences to society of the FCA ‘cracking down’ on short-term credit providers? In the context of concerns about short-term credit providers, what are the alternatives?  

Mark Lyonette, Chief Executive, Association of British Credit Unions Ltd (ABCUL) and Cornerstone Mutual Services

Caroline Barr, Panel Member, Financial Services Consumer Panel

Questions and comments from the floor with Mick McAteer, Director, Financial Inclusion Centre and Non-Executive Director, Financial Conduct Authority

Download (PDF, 718KB)

Download (PDF, 169KB)

16.25 – 16.30        Chair’s and FinCris’s thanks and closing remarks

Workshop Summary: How can we increase responsible lending and borrowing?

How can we increase responsible lending and borrowing?

Tuesday 28th April 2015

Wellcome Collection, London

Panel session 1: What impact have recent reforms of high cost, short term credit had on levels of responsible lending and borrowing? What should be a priority for action here?

Russell Hamblin-Boone – CFA

Russell suggested that the High-Cost, Short-Term Credit (HCSTC) and specifically payday lending market has been transformed by recent FCA reforms. CFA members have been ‘hit hard’ by the regulation introduced in April 2014 and Read more »

New report: introducing a time delay on access to credit

Jodi Gardner, Lindsey Appleyard, and Karen Rowlingson have written a new report on the potential effects of introducing a time delay on access to credit, particularly payday lending.

This report was produced for the Archbishop’s Task Group on Responsible Lending and Savings, and can be found HERE.

Response to the Financial Conduct Authority (FCA) Consultation on Payday Lending

Karen Rowlingson, Lindsey Appleyard and Jodi Gardner have written a response to this consultation, which can be found here:

http://www.birmingham.ac.uk/Documents/college-social-sciences/social-policy/CHASM/2014/response-to-the-FCA-consultation-from-CHASM.pdf

Impact of capping the cost of payday lending in the UK – report for the FCA

Karen Rowlingson, Lindsey Appleyard and Jodi Gardner have written a report for the Financial Conduct Authority on the potential impact of capping the cost of payday lending in the UK.

A copy of the report can be found here: http://www.birmingham.ac.uk/Documents/college-social-sciences/social-policy/CHASM/2014/payday-lending-cap-paper-FCA-final.pdf

 

Two new papers on regulatory lessons from Australia

The following papers have been written by Jodi Gardner and Karen Rowlingson as part of the Responsible Lending and Borrowing workstream.

The first, by Jodi, is entitled ‘The Challenges of Regulating High-Cost, Short-Term Credit: A Comparison of UK and Australian Approaches’

The second, by Jodi and Karen, is entitled: ‘Towards a ‘cost of credit’ cap in the UK: Lessons from Australia’.

Download (PDF, 468KB)

Download (PDF, 366KB)

Banking for the Public Good

The accepted version of Andy Mullineux’s paper ‘Banking for the Public Good’ can be found here.

2nd Philosophers’ Workshop – Report

2nd FinCris Philosophers’ Workshop

22nd / 23rd June 2013, Scarman House, University of Warwick

Attendees:

Tom Sorell, James Dempsey, Peter French (by Skype), David Silver, Nick  O’Donovan, Lena Rethel, Chris Cowton, Seumas Miller, Mark Hannam, Tim Fowler, Sajid Chaudhry, Antony Elliot, John Guelke, Leslie Sherratt.

Overview:

This workshop followed on from the 1st workshop that we ran in November 2012. The aims were very similar – to discuss how theoretical accounts of responsibility can be applied to the financial crisis, and to do so in light of the progress made in November. In particular, to continue the themes developed Read more »

New Paper by Andy Mullineux – Banking for the Public Good

Follow this link for the latest draft of a new paper written by Andy Mullineux on ‘Banking for the Public Good’.

Abstract:

Bank shareholders cannot be expected to provide good stewardship to banks because there is a conflict of interests between the shareholder owners and a non-mutually owned bank’s depositors; who provide the bulk of the funds in traditional retail banks and are willing to accept a lower return on their savings than shareholders, in return for lower risk exposure.  Regulation is required to Read more »

Taxing Banks – An Ethical Perspective

In this post James Dempsey and Tom Sorell, who are working on the ethics stream of the FinCris project, comment on some of the themes that have emerged from the work of the taxation stream of the project, led by Andy Mullineux.

  1. Taxation and the Financial Crisis

The financial crisis has raised serious concerns about the current organisation and operation of the banking sector in the UK. The tax regime that is imposed upon banks and other financial institutions is one place to look for failures that precipitated or exacerbated the crisis, and for tools to improve the functioning of the financial sector in the future. Read more »