The Times they are a’Changin’

Bob Dylan wrote his protest song in 1963 mainly, but not solely, about civil rights.

The order is rapidly fadin’

And the first one now

Will later be last

The Times they are a’Changin’”

A national newspaper (by co-incidence ‘The Times’) said last Monday (20 January 2013):

“Light-touch regulation got heavy and is about to get a whole lot heavier.”

The specific catalyst to this statement is the implementation of the Banking Reform Act which received the Royal Assent last December. ‘The Times’ said that

“The Regulator has been handed yards more rope with which to hang bankers.”

The changes include:

a) The individual is guilty until proven innocent (the burden of proof changes)

b) No collective Boardroom responsibility. Individual culpability will be invoked.

c) FCA now has six years to act (previously three).

Last week I used the profits warning issued by Quercus Publishing to illustrate the ineffectiveness of modern day regulation.

On Monday the inevitable happened. Quercus put themselves up for sale. It’s probable that the private investor will be wiped out.

Dylan was right:

“The Times they are a’Changin’”

But not for the better. ‘The Times’ made the point that the FCA now has around 500 heavyweight enforcers.

1,000 enforcers would have no difference to the shareholders in Quercus Publishing: it’s like asking Pippa Pig to referee a Twickenham International!

1 comment for “The Times they are a’Changin’

  1. Richard Hoblyn FCSI
    6 March, 2014 at 09:54

    The message that the media persist in portraying is that the current & previous UK regulator is “LIGHT TOUCH” is wide of the mark. Since 1986 ‘000s of private brokers have been extinguished by firstly TSA, then SFA, then FSA, then FSA’s doctrine known as the Retail Distribution Review (in itself a joke prophesy) and now FCA (known by some as the Ultimate F*cker).

    PERSONALLY I’VE HAD QUITE ENOUGH OF THIS PERSECUTION. THAT’S WHAT IT IS. IT’S TIME STOCKBROKERS EVERYWHERE UNITE AGAINST ALL METHODS OF REGULATION AND INSIST POLITICIANS REPLACE FSMA2000 etc WITH A SIMPLE INSURANCE POLICY OR LEVY TO COVER THIS DESTRUCTIVE MARKET MADNESS.

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