Financial Regulation in the UK and Ireland Essay -- Finance Business E

fiscal Regulation in the UK and Ireland there has been considerable changes in the regulation of financial markets in the UK and otherwise countries. wherefore is this? pecuniary markets tend to be more highly regulated than other markets. Explain why. In May 1997, the British Chancellor of the Exchequer do the decision to move the responsibility of supervision of financial institutions into the hands of a new regulatory say-so, the Financial Services Authority (FSA). This new authority replaced the Securities and Investments Board and took over responsibility for the supervision of banks, amounted money market institutions and glade houses from the vernacular of England. (Blake, 1999). Overall responsibility for regulation of financial markets lies with HM exchequer and is then divided up between the vernacular of England and the FSA. Now, the Bank of Englands remit is the operation of monetary policy and ensuring the stability of the financial system. The FSA has v primary functions Authorisation of market participants Prudential supervision of banks, insurance companies, securities firms and stock managers, and regulation of their conduct of business Investigation, enforcement and discipline Regulation of investment exchanges and glade houses Regulation of collective investment schemes. The change has been a move onward from largely self-importance-regulation to a combination of self-regulation and government interventionist regulation. Before 1997 the UK relied primarily on private regulation (by the stock exchange and, to an increasing extent, by the institutes of undertake accountants). (Benston, 1985). The regulation of the financial system in the UK however is non as explicit as the system in the US where the Securities and Exchange heraldic bearing holds some of the most extensive regulations, which are viewed by some as being excessive. The more complex and formal US rules and procedures do not permit as much flexibil ity and speed (Benston, 1995). So the UKs new system is a compromise between the best of self regulation and statutory regulation to ensure the financial markets work in an efficient and orderly manner. The FSA reinforces the orderly operation of the UK markets. For example, when a firm wishes to list on the London Stock Exchange (LSE), they must satisfy requirements of the previously self-regulatory LSE as well as ... ...es it has come in the form of nonindulgent regulation, for others in relatively flexible regulation. The challenges now come from the increasing need for harmonisation of regulations in the EU and also the need to react to the exertion that technology can have on financial markets, something that many rate of flow financial regulatory systems have yet to tackle.Works CitedBenston, G.J. Towards a damage/Benefit analysis of the SEC Have the British a fall apart Way?, Midland Corporate Finance Journal, 1985.Blake, D. Financial Market Analysis. Wiley, 1999Goodh art et al. Financial Regulation Why, How and Where Now?, Routledge, 1998.Labate, J. Senate Banking chief Phil Gramm orders overhaul of legislation Financial Times, dec 27 2000.Leader, Neuer Markt Financial Times, Jan 3 2001London Stock Exchange, Admission and divine revelation Standards May 2000.Quinn, T.P. The Economics of Financial Regulation A Survey., Central Bank of Ireland. 1992Stewart, J. The Changing Nature of Financial Regulation in Ireland , Journal of Financial Services Research , 1996.Stewart, J. The Effects of BIS Capital Adequacy Ratios on Bank financing, Irish Accounting Review,