Regulation (like everything else): It’s a people business
Last week, I attended a breakfast discussion with Barbara Novick (of BlackRock) on regulatory changes coming online in the US & Europe. Ms. Novick presented an overview that was both engaging and humorous.
Midway through the presentation, she shared a slide with names & pictures of key regulators and legislators involved with financial regulatory changes. She said something that rocked my world, in its simplicity.
“Regulation – like everything else – is a people business. People on this slide come and go. With those changes come varying work styles, appetites for academic rigor, and favors being called in.”
In my head, I imagined regulation development to be absent personality, self-interests, or varying levels of rigor. (I loved being unveiled to my self-imposed blind spot.)
As she brought color to the regulation process, she noted the dearth of asset managers actively participating in Washington. While many are ICI members, she said few directly participate in a process where the rule makers welcome their input and feedback. I’m not a public policy expert, regulation expert, or legislation guru. Still, I thought that’s a mistake. If nothing else, participating in the formation of once-in-a-generation regulation enables you to tell the story that “we were there to help form a safer, more trusted future” to your clients.
For many advisors, institutions, and end investors, that will matter tremendously.