2  BIS Review 6/2007  The SEC regulates the investment companies, merchant banks, venture capital companies, unit trusts and the rating agencies. Under the provisions of the Act, the SEC issues financial regulations to ensure that companies listed in the Stock Exchange operate in an orderly manner preserving the stability of the capital markets and, as a whole, the financial system. The registered insurance companies, the insurance broking companies and ancillary service providers are regulated by the IBSL to safeguard public interest. The insurance policies consist of long-term savings of the public and, therefore, the sustainability of insurance companies is important for longterm savers. All financial institutions operating in Sri Lanka are required to comply with the recently enacted Money Laundering Legislation, Countering the Terrorist Financing Legislation and the Financial Transaction Reporting Act. Relevant regulations will be issued shortly. The recently introduced Payments and Settlements Act provides wide powers to the Central Bank to regulate the national payments system. Despite these legislation and financial regulations, there are many operations by the financial intermediaries which cannot be captured by one or more financial regulation. One such category is financial conglomerates, which engage in banking and finance, insurance and stock market transactions. They still have a leeway to take advantage over others. Regulating these conglomerates is a real challenge. There is a limit to impose rules on all aspects of operations which will lead to overregulation and that should be avoided. Improved understanding of potential risks may bring in better results.
One of the things economists like to focus on is return on investment. For the modest investment the Bank has made to develop EconoME - £ - we hope to reach over 130,000 young people directly by 2020, with a multiplier effect through word of mouth and social media. And we know that our efforts will complement and reinforce those of the PSHE Association, Young Money, Economist Educational Foundation, NowTeach, Speakers for Schools and many other initiatives that are improving mathematical and financial literacy and inspiring students to broaden their horizons. We know our contribution depends on the support of teachers and influencers. That’s why we’re so grateful for your help in informing, educating and inspiring your students. 4  One was along the lines of: if a litre of cola costs £ how much would a third of a litre cost? Around 60% of adults in England and Northern Ireland were able to answer this correctly (see Bhutoria et al, 2018). 5 Disney and Gathergood (2011). 6 ING – Economics Network (2017). 7 Haldane (2017). 5  All speeches are available online at www.bankofengland.co.uk/news/speeches  5  References Bhutoria, A., Jerrim, J. and Vignoles, A. 2018. “The financial skills of adults across the world. New estimates from PIAAC”, available at: https://johnjerrim.files.wordpress.com/2018/03/piaac_working_report_march_2018.docx. Disney, R. and Gathergood, J. 2011. “Financial literacy and indebtedness: New evidence for UK consumers”. Available at: https://www.nottingham.ac.uk/cfcm/documents/papers/11-05.pdf. Gathergood, J. 2013. “Personal debt and psychological health”, The New Palgrave Dictionary of Economics, Palgrave Macmillan. Haldane, A. 2017. “Everyday Economics”.