Implementing Financial Regulation

Part 1 Background to the reforms: the Financial Services Act 1986 Gower Review of Investor Protection 1994; self regulation within a statutory framework; failures of financial regulation under the Financial Services Act 1986 regime; Maxwell Group Pension Funds, Barings, Morgan Grenfell Unit Trust & the pension mis-selling; regulatory lessons; the importance of compliance culture and risk management; the case for a new regulatory regime; the government's case for a single statutory regulator & other reforms; critique of its case; Part 2: objectives and accountability of the Financial Services Authority; legal status of the FSA; accountability, immunity and liability of the new regulator; objectives and constraints of the FSA; scope of the legislation; who is caught by the regulatory net; territorial reach of the legislation; statutory authorization offences; criteria for authorization; regulation of financial promotion; rule-making and rules; principles in the new regime; hierarchy of rules; civil actionability of rules; the role of guidance; the new regime of civil sanctions for market abuse; complementary criminal regimes of insider trading and misleading statements / practices; rationale for new civil market abuse regime; scope and definition of regime; enforcing financial regulation; non-market abuse cases: investigation; intervention; enforcement; market abuse cases; human rights; the place of individuals under the new regime; the regulatory framework for approved individuals; the disciplinary framework; senior management responsibilities imposed by general law + under the act & FSA rules; the role of the compliance department under the new regime.