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Financial Services

S/F/62. The UK approach to regulation

WORDS:

4700

DATE:

2006

PRICE:

49.99 GBP

In todays competitive business environment the need towards regulating the practices and operations of institutions is necessary in order to maintain stability, flexibility, and confidence in the market. Primarily, the needs for regulatory instruments have become a necessity in order to achieve economic efficiency and correct market failures wherever possible. Furthermore, an effective form of regulation maintains consistency and direction. The degree of regulation can be reflected through the market environment in addition to the financial institutions which operate in accordance with it policies and rules. The following paper describes the need for regulation in the UK with an emphasis on its financial sector. The UK is home to some of the biggest financial institutions that require a regulatory body to oversee their operations. The regulatory policies help to enhance its position furthermore. The paper, amongst other things will examine the rationales for a single UK regulator. In addition, an emphasis on the Basel accord and the development of the financial service authority in the UK will be specifically mentioned. The paper will address the FSAs main functions and authority it possesses. Also, a general discussion on the overall financial sector of the UK will address several key issues and point to the positive and negative aspects of this kind of regulation. Finally, a conclusion will be reached in which I shall assess the importance of regulation in regard to the country that I have chosen to analyze.

KEYWORDS: f, uk, approach, regulation,