12 June 2008
Centre of Excellence on Financial Regulation announced - backed
by City
The establishment of a new International Centre for Financial
Regulation (ICFR), to be led by Barbara Ridpath as CEO, was
announced today by Economic Secretary and City Minister Kitty Usher
and Interim ICFR Chairman, Mervyn Davies.
The ICFR is an industry-led project independent of the UK
Government and will be officially launched at the end of the year
and aims to become an international centre of excellence focused
entirely on financial regulation.
More than £5 million in funding to support the Centre’s
establishment will be provided by 19 financial services firms and
The City of London Corporation. The Department for Innovation,
Universities and Skills (DIUS) will also release the £2.5 million
that the Government has committed to the project.
The ICFR was first proposed by industry at a meeting of the
Chancellor’s High Level Group in 2006. Since the publication of
Lord Currie’s prospectus for the Centre in May 2007, the
development of the Centre has been led by an Interim Executive
Committee, chaired by Mervyn Davies, Chairman of Standard Chartered
Bank.
Kitty Usher said:
“I welcome the strong support from across the City for the
establishment of this new centre of excellence. As a world leader
in financial services, it is important that Britain continues to be
at the forefront of new developments in best practice in this
sector.”
Mervyn Davies said:
“I am delighted that the ICFR will be established this year,
with the support of such a wide range of companies and
donors. The City recognised several years ago that we need an
international body to promote cutting-edge training and research
and recent events in financial markets underline this is the right
time to launch. I am confident that Barbara Ridpath will make
the ICFR a huge success.”
Bill Rammell, Minister for Further and Higher Education,
said:
"I am delighted that DIUS is supporting this important
project. Recent turbulence in global financial markets has
only emphasised the valuable contribution that an independent
centre for world-class regulatory research and training can make to
the regulators and practitioners across the world and how important
these financial skills are for the future of the UK economy."
Barbara Ridpath, today confirmed as the Centre’s CEO, is
currently Executive Managing Director and Head of Ratings Services
Europe at Standard and Poor’s.
Barbara Ridpath said:
“The need for independent, objective research, thought
leadership and training in the field of optimal financial
regulation is becoming ever more apparent. It is important to
provide this in a way that addresses the concerns of all market
participants throughout the world, so as to ensure continued, open
and vibrant capital markets. I am delighted to have a role to play
in forwarding the agenda of the ICFR.”
Notes for Editors
- In Budget 2006 the-then Chancellor Gordon Brown announced a
commitment to work with the financial sector to establish a
High-Level Group of senior representatives from across the
financial sector, to develop and support a new strategy to promote
London as the leading international financial centre. The
High-Level Group has met previously on three occasions: on 18
October 2006, 9 May 2007 and 14 November 2007.
- The High-level Group met earlier today to discuss: conditions
in financial Markets, along with European and international
regulatory responses, and the Government's proposed reforms to UK
financial stability and depositor protection arrangements;
international issues including overseas promotion of the UK-based
financial sector; the International Centre for Financial
Regulation; and future plans for the High-level Group.
- Based in the City of London, but truly global in scope, the
ICFR will: carry out and sponsor training and research into
cutting-edge regulatory issues; support the development of new
regulatory approaches and international standards; and organise
debates on the key regulatory issues facing industry practitioners
and national regulators alike.
- Following the first meeting of High-Level Group in October
2006, the then Economic Secretary asked Lord Currie to chair a
working group to draw up plans for an international centre for
financial regulation:
http://www.hm-treasury.gov.uk/media/7/5/icfr_prospectus220607.pdf.
Since Lord Currie’s prospectus was agreed by donors in May 2007, an
interim executive committee comprising the major donors and chaired
by Mervyn Davies have been developing a business plan and
governance model for the Centre, which have recently been agreed by
the wider donor group.
- Today, the Government, industry and the City have reconfirmed
their provision of start-up funding for the ICFR. Barclays;
Citigroup; Dresdner Kleinwort; Goldman Sachs; HSBC; JP Morgan; Man
Group; Merrill Lynch; Morgan Stanley; Prudential, Standard
Chartered; UBS; Aviva; Aberdeen Asset Management and 3i and have
all agreed to provide start funding of £100,000 per year for three
years for the ICFR, with a further £100,000 per year provided by a
consortium of Ernst and Young, PriceWaterHouseCoopers, KPMG and
Deloittes. The City of London Corporation have also pledged £1
million to the ICFR. It is intended that the ICFR will become
self-funding after the initial set-up phase.
- Barbara Ridpath will be taking up her appointment as CEO of the
ICFR in September 2008 and the Centre will be officially launched
at the end of 2008. In the interim, all questions about the ICFR
should be directed to
daniel.mobley@standardchartered.com
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