For example, that is why we have removed unnecessary EU restrictions, limiting when firms can make distributions which would take them into their capital buffers. It is why we removed an EU requirement that international groups with significant activities would be required to operate underneath a single intermediate parent. It is why we have already delivered a 15% reduction in the reporting burden on insurers across the sector and significantly more for smaller firms with further reductions to come. And it is why we will be consulting on the removal of the bonus cap in the autumn which we did not agree with when it was first introduced. Rather we believe that the Senior Managers Regime and remuneration rules requiring deferral of bonus payments are more effective tools for ensuring bankers take proper account of risks. And we will continue to delete unnecessary rules, including onshored EU material. We have already deleted thirteen EBA and EIOPA Guidelines, five superseded Supervisory Statements and twenty-six PRA Technical Standards (with relevant parts made in rules). We will do more. Indeed, when a menu of options is available for pursuing safety and soundness, we will choose the one that facilitates competitiveness and growth. Becoming more responsive, accountable, and accessible We must also take the opportunity to strengthen our accountability to Parliament and the public, and to make our rules more accessible. Being accountable means having clear justifications for our policies and being open and responsive to challenge. The Financial Services and Markets Bill will strengthen our accountability to Parliament.

Thirdly, with Asia’s relatively strong economic growth and favourable demographics, investible assets from the institutional and private wealth segments are set to grow. In a 2011 report published by Cerulli Associates, institutional investable assets from Asia ex-Japan are expected to triple from $ trillion in 2006 to $ trillion by 2015. Total wealth from the private wealth segment is also expected to increase. In its recent Wealth Report, 6 Julius Baer expects the number of high net worth individuals in Asia to more than double over the  4  Risk Roadmap: Hedge Funds and Investors’ Evolving Approach to Risk (2012). 5  IMF: World Economic Outlook, October 2012. 6  Julius Baer Wealth Report 2012. 2  BIS central bankers’ speeches  next three years to almost 3 million. As Asia grows in wealth, there will be more capital requiring active and customised fund management expertise to take advantage of the investment opportunities in Asia. Asia’s strong fundamentals will support the valuations of Asian assets, which will draw a growing interest from institutional investors around the world looking to diversify and generate returns. According to Preqin, 7 46% of Asia-Pacific hedge fund investors intend to invest opportunistically in Asia-Pacific hedge funds, whilst 31% of Asia-Pacific hedge fund investors are looking to increase their longer-term allocations to Asia-Pacific. Deutsche Bank also noted in its 2012 Alternative Investment Survey that North America and Asia are currently the most sought after investment regions, with investors planning to allocate approximately 26% of assets to Asia.