Tuesday, March 8, 2011

MIPIM 2011: Balancing risk, regulation and recovery

Wisconsin Real Estate reporting from MIPIM 2011--on the afternoon session "Toward a Better Investment Marketplace: Reporting, Regulation and Risk" led by IPD (UK) Chairman Rupert Nabarro, addressing one of the official themes of this year's conference Finance: Beyond the Credit Crisis:

Much has been discussed about the role that lax regulation and excessive risk-taking played in the financial crisis of 2008. Today at MIPIM, a distinguished panel of experts continued that discussion with respect to the role of regulation and risk avoidance in the real estate marketplace.

While greater transparency is important, could new regulation hurt a fragile recovery? There was no doubt that new Basel 3 capital requirements and Solvency II regulations will have significant impact on real estate investment. Further complicating matters is overlapping and conflicting EU-level and country-level regulations.

The likelihood exists for markets to overheat again and mistakes to be repeated, but it would seem unlikely for the unique circumstances of 2008 to resurface, with or without new regulation.

Video via MIPIM World. For more coverage from the day's sessions, bookmark our blog and visit MIPIM World.

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