Bank of England chief economist warns of risks from insurers and funds

Bank of England chief economist Andy Haldane said on Tuesday that frequent regulatory intervention may need to become the rule to stem risks from financial firms such as insurers and investment funds. The British central bank has become more concerned that financial risks may have moved from banks to less regulated sectors, and Haldane's warning in a journal article follows similar comments last month from deputy governor Jon Cunliffe. While there was a possibility that central banks' approach to regulation would return to the low-profile model common before the financial crisis, there was a strong case that more active regulation would be needed in future, Haldane said. ‘It is likely that regulatory policy would need to be in a constant state of alert for risks emerging in the financial shadows, which could trip up regulators and the financial system,’ Haldane wrote in Central Banking Journal, according to Reuters.