The price of protection

This project examines recent developments in the approach to financial regulation, in response to the financial crisis and the scandals that have beset the sector from PPI mis-selling to LIBOR manipulation. It looks at the underlying economic and social justification for regulation of the retail finance sector and the particular challenges faced by consumers of financial services. Consideration of the regulatory burden imposed on businesses through industry and economic costs will be set alongside the very real need to protect consumers.

The report will conclude with an alternative vision for the sector, considering wider issues such as the competitiveness of the retail finance sector and the cultures and behaviours within it. It will make proposals for changes to support the development of a better functioning sector more able to reconcile the competing objectives of providing adequate protection for consumers, whilst allowing businesses to compete profitably under a sensible regulatory umbrella.

Methodology

The project involves desk-based research and analysis of the relevant literature including recent parliamentary and public policy documents, as well as contextual data. This will be supported by qualitative research, in particular a workshop that will bring experts together to debate emerging findings. The research findings and recommendations will be published by the end of 2013.

Staff

Demos Finance Associate Hilary Cooper will lead the research on this project.

For more information, please contact hil.cooper@gmail.com.

Funding

The project is supported by Lloyds Banking Group.