Launch of Roadmap on Regulatory Framework for Financial Services to Benefit Consumers and Staff

LONDON - A new report launched today (Tuesday 31st March) by The Financial
Inclusion Centre has set out the need for radical reform of the financial
services industry and put forward proposals for that reform.

The report entitled: ‘Reforming the Financial System’ was commissioned by
Unite the union in order to explore how the finance world needs to be
reformed so that it meets the needs of society and prevent another similar
crisis from occurring.

Derek Simpson, Unite Joint General Secretary said: “Staff working in the
financial services industry know better then most the urgent need for major
regulatory reform in the financial services sector. The report published
today must be considered by the government and financial regulator in order
to ensure that this important sector of our economy is able to emerge from
the current crisis and is strong enough to compete in a global environment.

“Unite will continue to campaign to achieve a regulatory framework that
is strong and able to meet the needs of all consumers, this includes the most
vulnerable in society. Unless there is a total overhaul of the finance
industry the public interest will continue to be ignored. We can not allow
the senior bankers to go back to business as usual.”

Mick McAteer, Director, The Financial Inclusion Centre said: “We are in a
new era of uncertainty caused by weak regulation and the reckless behaviour
of financial institutions that has put at risk the savings, investments,
pensions and jobs of millions of UK citizens. But out of adversity comes
opportunity. The report sets out a series of radical, but pragmatic and
necessary measures to reform the financial system so it meets the need of
society.

“Radical reform is needed given the scale of the financial crisis,
tinkering with the system is not an option.”

The report considers: international regulatory reform, regulatory
accountability, a new approach to regulation, governance of financial
institutions and the role of long term investors; and bank restructuring.

Notes to Editors

- To download the full report or the executive summary of: ‘Reforming the
Financial System’ please visit: www.unitetheunion.com or
www.inclusioncentre.org.uk
- Please note the scheduled launch has now been postponed due to a change
in the parliamentary schedule. This will no-longer take place on
Tuesday 31st March 2009 in The House of Commons.
- Key quotes from the ‘Reforming the Financial System’ report:

“The relationship between regulators and regulated has become
dysfunctional. Financial markets have fallen victim to the herd-instinct
compounded by a sense of arrogance in the infallibility of markets and
financial market operators. But the regulators who were meant to be
regulating these markets have also fallen victim to ‘group-think’ believing
that the role of regulators was to create the conditions for markets to
operate, and then take a step back to allow the informed ’self-interest’ of
markets to police itself.”

“Moreover, responsible, sustainable behaviour is likely to emerge if a
more collective system of rewards is encouraged. The concentration of large
bonuses in the hands of a number of key employees (the rain makers) distorts
behaviour and puts the financial futures and livelihoods of employees in the
hands of a powerful few with precious little accountability.”

“Indeed, the banks must be held to account for their role as primary
agents in almost wrecking the financial system (under proper conditions banks
can be the agents of sustainable wealth creation - this is not an attack on
banking or the City of London per se). Our proposals are designed to better
align the interests of the banking system with the interests of society,
consumers and industry. But we must recognise that banks were agents of
destruction. The capacity for destruction vested in the banks was given to
them by society. We delegated the power to the banks and failed to hold them
to account so they exercised power responsibly.”

Source: Unite the Union

For more information contact: Saba Mozakka, Unite press office on: +44(0)20-7420-8916 or +44(0)7768-693-953