Balancing act -
[Cached Version]
Published on: 11/19/2003
Last Visited: 11/19/2003
Michael Mathews, past president of the Law Society, who represents the City of London on its council, argues that it would be wrong to criticise self-regulation other than by comparing its merits to a definite alternative. 'There are many forms regulation could take, and once one has been suggested, it would be possible to measure the present system against it.'
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Mr Mathews is aware of the way the political wind is blowing, and it meant this review was bound to come sooner or later, he says. 'Self-regulation is not flavour of the month,' he remarks.
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Mr Mathews, a former partner at Clifford Chance, says the City would 'probably shed few tears' at the loss of the Society as a regulator.
Paradoxically, he says, the City is unlikely to be happy with many alternatives, 'which could be substantially more expensive'.An alternative regulator might be funded on the basis of an income tax, he suggests. 'And there could be a double whammy, with even more regulation,' he fears. 'For many firms, better the devil you know.'