General framework and conduct of business
What legislation governs authorization and regulation of
banking activities in your jurisdiction? What has been the most
significant regulatory issue in your jurisdiction?
Authorization of banks, investment banks and other financial
market participants is governed by the Financial Services and
Markets Act 2000 (FSMA). The FSMA, which was implemented in 2001,
provides for the establishment and operation of the Financial
Services Authority (FSA), the unitary regulator of banking,
securities, derivatives and insurance business in the UK. The FSA
has four regulatory objectives: maintaining market confidence,
promoting public awareness, securing the protection of consumers
and the reduction of financial crime.
Key regulatory issues for the FSA have included:
restoring consumer confidence following reviews of the
mis-selling of pensions, mortgage endowments, shares in
investment trusts, and so-called precipice bonds;
enhancing the financial regulation of insurance companies;
and
addressing conflicts...