The report from the Financial Services Authority (FSA) chairman Lord Turner, originally commissioned by Gordon Brown at the height of the financial crisis last year, included plans for greater regulation for banks.
It calls for "fundamental changes" to bank capital and liquidity regulations and for greater regulation.
"If an activity looks like a bank and sounds like a bank, we will regulate it like a bank," said Lord Turner.
He added in future the costs of regulation will stop massive growth in profits for banks seen in the last decade.
"Those policies will impose costs on banks. Bank equities will be a lower return and lower risk investment," Lord Turner said.
"The changes recommended are profound, and the banking system of the future will be different from that of the last decade. The world’s economy will be better served as a result."
Lord Turner rebutted the feeling the market always knows best - stating there was an "exaggerated faith in rational and self correcting markets" .
"The financial crisis has challenged the intellectual assumptions on which previous regulatory approaches were largely built, and in particular the theory of rational and self-correcting markets," he said. "Much financial innovation has proved of little value, and market discipline of individual bank strategies has often proved ineffective." He added: "A global market economy remains the best means of delivering global prosperity: it requires a global banking system focussed on serving the needs of businesses and households, not in taking risks for quick return."