From Michael Lewis’ 1991 collection of columns ‘The Money Culture’, about the then-recent Financial Services Act in the UK:
I recently spoke with a man widely regarded as one of the most astute and scrupulous investors in London. He manages nearly GBP 2 billion, some of which belongs to him. The Act essentially assumes that he is inclined to front run his clients — buy shares with his own money, then nudge the price with his clients’ money. The Act therefore requires him to execute orders for his clients before he does anything for himself. He hasn’t time for this. Often the markets are crazy, and he has not more than 30 seconds to buy or sell at a price. What he has always done is execute orders simulataneously, and give his clients the best price. He will copy with the Act by simply excluding his clients from whatever quick decsision he is making. Clients will effectively not get the full benefit of his wisdom. If I were a client I would be screaming for less protection.
– What the British can learn from American History