Financial regulation ‘at saturation point’

MONTE CARLO – The level of regulation in financial markets has reached saturation, and now poses a significant risk to institutions, said a panel of chief risk officers (CROs) speaking at sister publication Risk magazine’s annual Global Risk Management Conference in Monte Carlo last month.

"The pendulum has now swung too far one way," said Kenneth Winston, global chief risk officer at Morgan Stanley Investment Management. "In five years’ time, it should swing back towards allowing freer markets, but with the right level of regulation," he told delegates.

But speaking at the sidelines of the event, Winston disagreed with a statement that regulatory risk was the top risk facing the industry. He said that most regulation is in place to stop freak ‘Nick Leeson-type’ events, and as