The Sandler Review

The Sandler Review of the UK market for medium and long-term investment will have far-reaching implications for financial services firms and not least for compliance, says Jonathan Bundy of Deloitte & Touche. Its core objectives of increasing market efficiency, improving value for consumers, and improved investment decision-making are ambitious but need to be considered in the context of wider initiatives to increase the overall savings ratio for the UK as a whole. Although there will inevitably be individual “winners & losers” in the process, the recommendations may yet serve to expand the market if embraced by the industry, the regulator and HM Treasury.

Sandler’s approach and recommendations

Ron Sandler’s Review sets out a vision of a well-functioning market for retail savings and recommends changes that move towards this ideal. Its underlying principle is that a form of government intervention which serves the majority will better serve UK savings than regulating to protect the specific needs of the individual. This suggests an important change in regulatory thinking that could lead to a shake-up in the UK market.