Financial Services Must be Regulated by the State

Suggested draft clause for the constitution:

'It is the responsibility of the state to regulate the financial markets and supply of financial services with the objective of ensuring the stability of markets and the protection of investors in financial services'

Idea behind the draft clause:

The reasons why the constitution should mandate that the state must regulate financial services are:

- we have learned through history that the markets in financial services do not offer sufficient stability or consumer protection without regulation

- by mandating regulation in the constitution we ensure that no government cannot avoid this responsibility nor delegate it away


edited on Apr 13, 2015 by Ian Smith

Ian Smith Apr 5, 2015

Dear All,

I am posting a quick comment here and in my other ideas.

Firstly, I want to say how much I have enjoyed seeing all of your contributions on this and other ideas and how impressed I am with the range of expertise and erudition which has filled these debates.

Secondly, I wish to put forward a couple of suggestions as to a way forward at this stage.  They are:

A.   I suggest that we all refrain from further voting until the ideas have been refined and represented and have then been debated for a while.  My thinking here is that we will want to see the reshaped ideas and see the comments on those refined ideas before we decide whether they are to be voted up or down,  I do not think that we should refrain from voting on comments but perhaps try not to vote too hastily on them.

B.  Now that the hurly burly of the "Hacking" phase (some of it quite savage) has passed, I hope and wish that we will adopt a more collaborative and less combative approach in our commentary, so that commentary is given a chance to be constructive and really do the job of refining the ideas in question.

C.  I would hope that we can refrain from attacking the very existence of the idea under discussion in this phase or the fact that it has successfully gone through to this phase against the wishes of those who voted it down.  I sincerely hope that the previous critics of an idea, will still respect that it found favour with the crowd and now help to refine the idea in this phase.

Thirdly, I will try my best not to introduce any more typos and mangled phrases! 

Best wishes for the holiday weekend!


David Shepherd Apr 7, 2015

I agree with this. The mortgage business was deregulated in the USA in the 1980s. It led to the Sales and Loan scandal (S&L is the US equivalent of Building Societies). It cost the US taxpayer $1trillion, hundreds of convictions, senators implicated. Tragically the US regulators soon forgot about it and the financial regulators in the rest of the world, including the UK, learnt nothing.

Ian Smith Apr 7, 2015

David, and Steveg33, you may be interested in my post concerning controlling debt.  It is at:

All the best, Ian

Saeeda Bukhari Apr 16, 2015

I just wanted to add one comment. Currently we have financial services regulated by the state, however I believe that we need a third presence in some manner.

Either by including Freedom of Information. That journalists and civil society organisations, will have the right to audit both state and financial institutions dealing with financial markets twice a year. That information must be made available to them.

Or having a part of the state regulatory authority be staffed by civil society and journalists.