Structure and objectives of the UK regulatory system

Structure and objectives of the UK Regulatory System

Introduction

For many decades of the nineteenth and early twentieth century, the financial market of UK was largest and most advanced in the world, which corresponded to the leading place of the British Empire in the world economy. After two world wars, Britain gradually surrendered its former position in world production and trade, but that has preserved, and in 1970-1980s, even a strengthened role of the international financial center. In terms of international financial transactions of the United Kingdom market is unparalleled. Therefore, the following essay is going to analyze the structure and objectives of the UK regulatory system and also will assess the impact the Independent Commission on banking recommendations by Sir John Vickers upon the UK Financial Services Industry.

Discussions

History of UK Financial Regulation

Financial Services Authority (FSA) is the central authority for market surveillance of financial services UK. FSA is a company with legally limited by guarantee (certificate number 01920623); a surety (guarantor) is HM Treasury. It was formed on June 7, 1985 under the name of the Office of Securities and Investments Ltd operates (SIB) at the initiative of Minister of Finance of the United Kingdom, which is the only member of the company, who gave her some legitimate regulatory powers to the then Financial Services Act 1986.

The Chairman of the FSA was Cullen McCarthy, Director was Hector Sants. In late May 2008 the government published the information that after the departure of Sir Kallema retired in September 2008, will occupy his post, Lord Adair Turner (born Lord Adair Turner).

The United Kingdom Regulatory System

The share of the UK was more than 40% of the turnover of trade in shares of foreign issuers (i.e., foreign stocks traded across national markets), a third of foreign exchange, more than 40% of the OTC derivatives market, the fifth part of an international bank lending and 60% primary and 70% recycled Eurobond market. London is a leading center of trade in precious metals. In England one-fifth of all collected premiums are on marine insurance. The country ranks first in the world in a positive balance of trade in financial services and about $ 50 billion in 2006, and by far Switzerland's second place. In the UK financial services industry, it employs thousands of people in 1071. Of those working in London, 338 thousand, but it creates 43% of GDP produced in the UK financial sector.

Features of the UK Financial System

Although the financial system of the United Kingdom by the type referred to as "based on the securities market (market-based), the ratio of "bank assets / GDP" is greater than Germany and Japan, the countries with bank financial systems. The reason for this is that in London there are 254 foreign banks (more than anywhere else in the world), which in 2007 accounted for 58% of bank assets. The activities of foreign banks in London are mainly associated with international operations, rather than lending to British ...