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This week from Chris Smith, the editor:
Three way split in challenging times
Changing times are bringing plenty of challenges to the sector and resolving legal issues is the latest problem that is leading to a revision in thinking.
Once again the issue of reputation is a factor in the calculations but it is no longer as simple as it once was.
In the past, a dispute - particularly over a minor infringement with the regulator - was settled with payment of a fine without admitting liability because it was cheaper than to fight it.
No-one liked the idea of conceding but the amount of time and energy spent on contesting a decision outweighed the sense of right.That attitude hasn’t change for the companies involved but there are two factors that have been changed by the current crisis.
First, the biggest legal headache now is regulation thanks to the gaps and uncertainty rather than the traditional disputes between parties. This is only going to get worse and in 2013, when the first wave of rules take effect, it’s going to create more serious problems.
Some companies will simply pull the plug on activity, but for those left behind there is the prospect of battles with the lawyers. Firms with deep enough pockets can simply take it on the chin.
For employees, their biggest fear is the damage to their reputation and that concern has been heightened by the current climate. They will not welcome having their future prospects damaged by something that was not their fault.
It’s not a far-fetched problem as this week it was confirmed that former MF Global employees are suing the company in a class action.
On a brighter note, this week is when the industry steps up on behalf of good causes. The FOW charity carol concert found people in good voice and there was plenty of mulled wine to go round.
The event raised money for Futures for Kids and attendees heard from one of the young people who have been helped as a result of their work. It was a terrific night.
Also held this week was the ICAP charity day which has now become an annual diary fixture here in London, boosting morale as well as the coffers of needy causes.
Both events show a side of the industry that is often overlooked by the critics and both happen because it’s the right thing to do regardless of reputation.
Chris Smith, editor
csmith@fointelligence.com
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