In a speech to the Institute of Directors Annual Convention, the Governor discusses some of the issues surrounding large company collapses, and in particular the roles of auditors, the Boards of Directors and independent directors, pension fund trustees, lending banks and regulators. He argues for the need to make clearer each agency's role; for agencies to be more aware of their dependence on each other; and for more realistic expectations of how much these agencies can or should provide protection in a free market society. Action is, however, being taken or considered on accounting standards, auditing and colporate governance; a debate is under way on pension funds; and banks are examining ways of for instance, guarding against collective over-lending. Some improvements can and must be usefully made, but the Governor finally warns against the risk of over-reaction and over-regulation. He urges that a sensible balance between investor protection and market freedom be maintained.