So I want to give you some concrete, practical proposals for change. And I want to tell you not only that these should be delivered but that they will be delivered. Individually, none of these reforms may sound like a game-changer. A number lack the pizzazz of a “tar and feathers” strategy. But taken together, I think they amount to the most radical agenda of financial reform for 80 years. Importantly, I also think they will work. First, and perhaps foremost, culture. We are about to undertake structural reform of the global banking system, perhaps the largest since the 1930s. In the US, this is the Volcker rule. In the UK, it is the Vickers proposals. Most recently in Europe, we have had the Liikanen plans. Though different in name, these structural reform proposals contain a common thread. They will seek a separation – or at least a ring-fencing of retail and investment banking activities, legally, financially and operationally. Part of their motivation is to stop some of the riskier parts of investment banking, such as proprietary trading, infecting the indispensible parts, such as deposit-taking and loan-making. The crisis has provided ample evidence of the costs of such cross-contamination, with losses on risky trading portfolios imperilling bank depositors and borrowers. But at least as important is what such a separation might do ahead of crisis. Ahead of this time’s crisis, financial and human resources were diverted away from retail banking services and non-bank activities towards investment banking.

Under the programme, examinations have been made mandatory to maintain continuing education standards of agents. ·  Guidelines dealing with unfair practices in insurance business have been introduced in April 2003 to provide a more comprehensive framework for the regulation of insurance market practices. Among other things, the Guidelines provide for enhanced disclosures to consumers, requirements for insurance to be sold on equitable terms and conditions, and specific restrictions against misrepresentation and unfair discrimination. ·  The Guidelines on Claims Settlement Practices introduced in 1995 have now been revised to incorporate new measures and improved market practices in claims handling, as well as the specification of minimum fraud control and risk management practices relevant to the claims process. ·  A minimum standard on product disclosure and transparency in the sale of medical and health insurance policies was issued in May 2003. The standard requires insurers and their intermediaries to provide sufficient details of the essential features of medical and health policies so that policyholders will understand the important provisions of the policies, in particular, with respect to premiums, benefits, exclusions and limitations under the policies. ·  A survey has also been commissioned to determine the level of consumer satisfaction with financial services, including insurance. The results of the survey will provide important input for the development of a service quality index for financial services that will serve as a benchmark for financial institutions to evaluate their service levels and identify areas for improvement.