Skip to main content Accessibility help
×
Home
Hostname: page-component-7f7b94f6bd-vvt5l Total loading time: 0.356 Render date: 2022-06-29T02:11:11.777Z Has data issue: true Feature Flags: { "shouldUseShareProductTool": true, "shouldUseHypothesis": true, "isUnsiloEnabled": true, "useRatesEcommerce": false, "useNewApi": true } hasContentIssue true

2 - The liberalisation of financial markets: the regulatory response in the United Kingdom

Published online by Cambridge University Press:  08 July 2009

Eilís Ferran
Affiliation:
Director Centre for Corporate and Commercial Law University of Cambridge
Rainer Grote
Affiliation:
Max-Planck-Institut für ausländisches öffentliches Recht und Völkerrecht, Germany
Thilo Marauhn
Affiliation:
Justus-Liebig-Universität Giessen, Germany
Get access

Summary

With the coming into force of the Financial Services and Market Act 2000 (FSMA) in December 2001, the United Kingdom entered upon a new era in financial regulation. In place of a fragmented regulatory structure where responsibilities were divided between a number of agencies, under the new regime the Financial Services Authority (FSA) is the single regulator of the financial sector. In place of self-regulation by the industry or, even, self-regulation within a statutory framework as the previous regulatory regime for the securities industry was conventionally described, financial regulation has been put onto a clear statutory footing. The FSA has an impressive armoury of statutory powers at its disposal.

These dramatic regulatory changes in the United Kingdom were made in response to developments in financial markets and the failure of the previous regime to keep pace. Well-publicised scandals during the 1980s and 1990s such as the mis-selling of pensions and life assurance products and the collapse of individual financial firms like Barings indicated that the old regime was failing to meet the regulatory goals of protecting the interests of consumers, preventing fraud and maintaining public confidence in the financial sector. This in turn triggered political pressure for reform.

When the Financial Services Act 1986 and the Banking Act 1987 were enacted, many of the features that characterise modern financial services business in developed markets such as the United Kingdom were already appearing.

Type
Chapter
Information
The Regulation of International Financial Markets
Perspectives for Reform
, pp. 57 - 74
Publisher: Cambridge University Press
Print publication year: 2006

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)
3
Cited by

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×