Financial System Lost Trust


    Financial capitalism is, not perfect, but it is the best system for generating growth and has raised the standard of living for millions over the last three decades, says John Taft, a former CEO of RBC Wealth Management ‒ U.S. and author of two books including, most recently, ‘A Force for Good.’ He told a session named after this book at the Portfolio Management Association of Canada (PMAC) National Conference that in the last decade trust in the financial system was lost as a result of the financial crisis. In fact, it has left Millennials believing socialism is better than capitalism. Society’s reaction to this has been punitive with investigations, fines, civil actions, and more new regulations than for any other industry. To repair the breach of trust, everyone in industry needs to do better job of listening to and interpreting society’s expectations on the role financial entities should be playing in the world today. In fact, many are trying to find a new model of capitalism that better fits with society’s expectations, however no-one knows what that is, other than something which offers equality and fairness across all generations.