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

fiscal regulating in the UK and Ireland There has been commodious changes in the legislation of fiscal markets in the UK and other countries. Why is this? Financial markets tend to be more highly regulated than other markets. apologise why. In may 1997, the British Chancellor of the Exchequer made the ratiocination to move the responsibility of supervision of financial institutions into the hands of a virgin regulatory authority, the Financial go Authority (FSA). This refreshing authority replaced the Securities and Investments table and took over responsibility for the supervision of banks, listed money market institutions and clearing houses from the bevel of England. (Blake, 1999). Overall responsibility for rule of financial markets lies with HM Treasury and is past divided up between the Bank of England and the FSA. Now, the Bank of Englands slack is the operation of monetary policy and ensuring the stability of the financial system. The FSA has five pr imary winding functions Authorisation of market participants Prudential supervision of banks, insurance companies, securities firms and fund managers, and law of their conduct of business Investigation, enforcement and discipline ordination of investment exchanges and clearing houses Regulation of collective investment schemes. The change has been a move away from generally self-regulation to a combination of self-regulation and government interventionist regulation. Before 1997 the UK relied primarily on occult regulation (by the stock exchange and, to an increasing extent, by the institutes of chartered accountants). (Benston, 1985). The regulation of the financial system in the UK however is not as definite as the system in the US where the Securities and Exchange Commission holds round of the most extensive regulations, which are viewed by some as organism excessive. The more complex and formal US rules and procedures do not give up as much flexibility and speed (Bens ton, 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 effectual 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 strict regulation, for others in relatively flexible regulation. The challenges now come from the increasing need for harmonization of regulations in the EU and also the need to react to the effect that applied science can have on financial markets, something that many current financial regulatory systems have yet to tackle.Works CitedBenston, G.J. Towards a Cost/ earn analysis of the SEC Have the British a Better behavior?, Midland Corporate Finance Journal, 1985.Blake, D. Financial Market Analysis. Wiley, 1999Goodhart et al. Financial Regulation W hy, 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 Disclosure Standards May 2000.Quinn, T.P. The Economics of Financial Regulation A Survey., Central Bank of Ireland. 1992Stewart, J. The ever-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,