Pension professionals had a change of heart on whether the industry had learnt its lessons 10 years on from credit crisis, following a debate with industry figures.

Prior to the discussion at the Annual Law Debenture Debate, 63 per cent of attendees believed that lessons had not been learnt.

However, following the debate another poll was held with the same question, and 57 per cent decided that the industry had in fact learnt its lessons 10 years on.

LCP investment partner, Dan Mikulskis, summarising the arguments, noted that since the crisis attitudes had changed as companies and organisation are now no longer considered “too big to fail”.

Furthermore, he said that banks are “much better prepared to weather crises” as they are “smaller and better capitalised”.

Mikulskis continued: “Much lending is now not on bank balance sheets so the system is better set up to absorb. Exposures in derivative system are much better diversified.

“Greed will always be with us but checks and balances are in place. And culture has changed.”

Despite this, there were still ways in which the industry had not learnt its lessons.

It was argued that we are still borrowing too much, as global debt is almost double the level it was at before the credit crisis.

Summarising the points made during the debate, Mikulskis added: “Lending standards are still bad, and regulations haven’t made the system safer. Risk has moved not disappeared.

“Culture in finance is as bad as ever and human nature doesn’t change - greed will exist and excess will persist.”

Law Debenture pension trustees chairman, Mark Ashworth, concluded: "The result, which reversed the thinking of the audience at the start of the debate, reflected just how complex and challenging it is to think about whether we have indeed learnt the lessons of the credit crisis.

“All of the arguments were explored skilfully and energetically, and the dramatic reversal just proves that minds can be changed after hearing all of the arguments."

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