It is well understood that markets must be “fair” as well as “free” to do their job effectively - and that we have to have rules that reflect public policy concerns. But it is equally understood that, carried too far, prescriptive intervention can stifle competition and the market appetite for risk. In getting the balance right, market participants can do a lot for themselves. My impression certainly is that there is a growing recognition that high standards of professional competence and integrity are vital to a firm’s reputation and commercial success, or even its survival - and that helps to limit recourse to intervention. But it’s also true that we have a critically important, longstanding, tradition in this country that, where there is a perceived need for intervention, the relevant authorities consult extensively with the markets which helps to avoid unintended consequences and to ensure a measured and properly targeted approach. It’s a tradition which others would do well to adopt. My second explanation for the City’s success in financial services is non-discrimination. Provided they meet the standards of professional competence and integrity we expect in London, it makes no sense at all - in fact it would be self-inflicted injury - to distinguish between the firms or individuals who work here, on grounds of nationality or ethnic or religious background - or, in the case of individuals, on grounds of gender, which is a point, my Lord Mayor, which I know that you have made forcefully from the beginning of your term in office.
Financial institutions, including insurance companies, unit trusts, and other non-bank financial institutions, need to continue to develop innovative financial products that can meet the needs of savers throughout their life cycle. The availability of a wide range of savings instruments for savers is a necessary pre-requisite for effective mobilisation of the nation's savings. Indeed, the ongoing evolution of an innovative, dynamic and diversified financial system in Malaysia will not only help Malaysians save, but also invest effectively for their future by facilitating the more efficient allocation of personal resources. Thank you. 2  BIS Review 2/2004