The Investment Management Association (IMA) has published a submission which it sent to the Government ahead of the G20 summit scheduled for 2 April 2009.

The IMA calls for robust regulatory structures and regimes for the financial sector as a whole. In particular, the IMA states that future regulation will need to recognise that some parts of the banking system are essential to the functioning of a market economy, and address the challenge of reconciling this with the need for unsuccessful businesses to be allowed to fail.

The IMA also warns that there is still an urgent need to restore confidence in the banking system if the current financial crisis is to be resolved. Conditions need to be created in which banks can once again attract private capital. This must, one way or another, inevitably involve separating the "good" assets from the "bad" within bank balance sheets.

The IMA acknowledges that the crisis cannot simply be regarded as a failure of regulation, and that there has also been a failure of other parts of the regime, including governance. The roles of non-executive directors, auditors and investors all need to be reviewed.

View IMA calls on G20 to develop more effective financial regulation for the future, 16 March 2009