Tackling fear and greed in the City
London’s financial sector is uniquely structured around the principles of fear and greed, according to Andrew Fisher, chief executive of wealth advisers Towry.
Speaking at the latest in a series of “Tomorrow’s Value” lectures, hosted by CIMA and leading think tank Tomorrow’s Company, Fisher focused on the negative impact that inappropriate remuneration and incentives have in the financial sector.
“The financial sector used to be the servant of commerce, but has now transformed into the serpent of commerce, destroying value creation,” he said.
“Decision-makers in the sector have no concept of the risk they are taking with clients’ assets and yet their rewards remain disproportionately high.”
The lecture also explored alternatives to the standard remuneration system, examining examples such as the lockstep remuneration model, where remuneration is based on the length of service rather than individual performance.
In addition, Fisher stressed the need for a new culture of “trust and integrity”, citing the need for “robust codes of ethics that are adhered to, the removal of inappropriate remuneration tools and mechanisms, and a desire to change”.
Following the lecture, the audience of around 100 leading professionals engaged in a lively debate with a business panel comprising Damian Carnell, director at Towers Watson, and Paul Feeney, chief executive of Old Mutual Wealth Management.
To view a video of the event, visit tinyurl.com/b9bjqo9.