IMA CALLS FOR SPEEDY IMPLEMENTATION OF BANKING REFORMS

Responding to the Treasury, Bank of England and Financial Services Authority's further proposals today on strengthening the framework for financial stability and protecting depositors, Richard Saunders, Chief Executive at the Investment Management Association (IMA) said:

"Today's proposals are welcome confirmation of the Government's intention to carry through two much needed reforms.  The first is the new, higher level of depositor protection, which is essential to maintain the confidence of ordinary depositors.  The second is the Special Resolution Regime, which will allow depositors in any bank which fails in future continued access to their money while the affairs of the bank itself are settled.  Both need now to be implemented and implemented quickly.

The Government should also move speedily towards the pre-funding of deposit protection.  The business of banking requires investor and depositor confidence, which in turn requires this scheme to be in place.  Deposit insurance is thus part of the cost of doing business, and should be recognised as such."

-ENDS-

About Investment Management Association (IMA)
The IMA is the trade body for the UK's £3,100 billion asset management industry.  The money its members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.  Its role is to represent the industry and promote high standards

For further information, please contact:
Noreen Shah, Press Officer, IMA, 020 7831 0898

Out of hours
Mona Patel, Head of Communications, IMA, 07834 089332