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

LONDON Tue Aug 5, 2014 3:51am EDT

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LONDON Aug 5 (Reuters) - Bank of England chief economist Andy Haldane said in an article on Tuesday that frequent regulatory intervention may need to become the rule to stem risks from non-bank financial firms such as insurers and investment funds.

Haldane's warning echoes one last month from deputy governor Jon Cunliffe and comes as the Bank of England becomes more concerned that financial risks may have moved from banks to less heavily regulated sectors.

"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.

"In other words, regulatory fine-tuning could become the rule, not the exception," he added. (Reporting by David Milliken; Editing by Catherine Evans)

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