Affirmation: Financial services can spread risk and benefits in ways which are good for everyone. Insurance represents a pooling of risk against life’s tragedies and other uncertainties. The provision of medium and long term finance enables businesses to grow.
Analysis: The financial sector has become self-serving, devoting too many resources to trading for trading’s sake and making decisions on too short-term a basis. The financial sector has failed to spread risks fairly.
Action: Financial services firms should have a clear commitment to the long-term interests of their customers and should be held accountable for that commitment.