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Alan Brown, chief investment officer, Schroders

1) What is the single most damaging unintended consequence of this year's wave of regulation? 
It is hard to pick just one! However, Centralised Clearing has the potential to make risk reducing hedging transactions by low risk participants such as pension funds prohibitively capital intensive and expensive. The devil is always in the detail, but it may also, if we move to gross margining, change the entire profit dynamic for investment banks. If that happens, then potentially liquidity in the derivatives markets could be severely damaged with possible knock on implications for the cash markets.
2) How far along the path to recovery are we? 
The UK had six quarters of decline and has now had four quarters of recovery (through the end of Q3). An IMF study in 2009 shows that this is quite typical for a synchronised financial crisis. On average, the period of decline runs for seven quarters, and so does the recovery. If we follow that pattern, we will get back to where we started in GDP terms in about another year. But this crisis may have longer-term consequences for trend growth rates through enduring damage to the capital formation process.

Financial News asked senior figures from across the asset management industry for their opinions on the unintended consequences of the latest regulations and the path to economic recovery.

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Lauren Willington

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The UK lender has tapped a veteran dealmaker to head up a key area of growth

Several big law firms are discussing $500 million in pro bono legal services with the White House to avert restrictions on their business, people familiar with the matter said.

By Emily Glazer, Josh Dawsey and C. Ryan Barber

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Carney said the 90-day pause, and Trump’s pledge to negotiate new trading arrangements with dozens of countries, “will likely result in a fundamental restructuring of the global trading system.”

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The BOE said that further sharp falls in asset prices are likely.

Bank of England Warns of Tariffs Threat to Stability of Global Financial System

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