Deregulating FICOM

There may be a quick $125,000 for you if you have "Detailed knowledge of documentation requirements to obtain approvals from Cabinet Ministers in BC" and can produce recommendations to reduce red tape for BC's insurance companies, credit unions and trust companies.

In language fit for April Fools Day, the BC Bid website (Ministry of Finance Solicitation Number FCSP-2003-1) says that "The original bid opportunity had an issue date of April 4, 2003. This amended bid opportunity reflects the actual issue date of March 28, 2003." When the request for proposal document is downloaded, it begins with instructions to the "author of the RFP" and concludes with "WHEN YOU ARE FINISHED WRITING THIS DOCUMENT, CLICK ON THE TABLE OF CONTENTS BELOW, USE F9 TO UPDATE IT, THEN DELETE THIS INSTRUCTION." That kind of reminds you of the old Mission Impossible series where the tape would self destruct after its instructions were heard - in this case there was no self destruction.

The purpose for hiring yet another consultant, or better put, the objective for the consultant is: "… to clarify the public policy objectives of government in relation to the regulation of participants in the financial services sector and ensure that the regulatory framework maximizes the achievement of those objectives while imposing the minimum regulatory burden and economic cost. By doing this, it is expected that the regulatory burden on participants in the financial services sector will decrease."

Got that? The conclusion is predetermined - reduce the "regulatory burden". Some participants in phases I-III of the review suspected that and provided appropriate comments in their submissions. Consultants who don't understand that predetermined outcome need not apply. The premise is to "clarify the public policy objectives of government in relation to …" - spaceship to government: the primary objective is to make sure the financial institutions don't go belly up and take our money with them!

A good word of advice to those who have money in BC based financial institutions might be to carefully read the financial reports of those institutions so as to be prepared. It looks like government is about to get out of the business of protecting consumers of BC based financial services.