Regulating Financial Services and Markets in the 21st Century

Half Title Page......Page 1
Half Title verso......Page 2
Title Page......Page 3
Title verso......Page 4
Preface......Page 5
Contents......Page 7
List of Contributors......Page 9
The Dawn of a New Era in UK Regulation of Financial Services and Markets......Page 11
Global Business, Global Regulation?......Page 12
Markets Without Frontiers - The Regulatory Response to Technological Developments......Page 14
Examining the FSMA Regulatory Objectives and Regulatory Principles......Page 15
The Regulation of Approved Persons......Page 18
Discipline and Enforcement......Page 20
Accountability......Page 21
European Securities Regulation......Page 23
International Financial Regulation - The Role of Rating Agencies......Page 25
The Legislative Process......Page 27
The Dogs that did not Bark......Page 29
Accountability......Page 31
Where do we go from here?......Page 32
Introduction......Page 35
Bank Regulation......Page 37
Non-Bank Domestic Regulation......Page 38
International Aspects of Regulation......Page 41
The Real Impact of Financial Systems......Page 42
Conclusions......Page 45
4.  Examining the Objectives of Financial Regulation - Will the New Regime Succeed?  A Practitioner's View......Page 47
What will the Markets and Industry Look Like?......Page 49
Will the New Regime Succeed?......Page 55
Conclusion......Page 66
5.  Incentive v. Rule-Based Financial Regulation: A Role for Market Discipline......Page 69
Do Incentives Work?......Page 70
An Incentive Structure for Financial Regulations......Page 72
The Pros and Cons of Incentive v. Rule-Based Regulation......Page 74
The Road Ahead.........Page 81
6.  Directors' Fiduciary Duties and the Approved Persons Regime......Page 85
The Approved Persons Regime......Page 86
The Law of Directors' Duties......Page 89
Corporate Governance......Page 90
The Relationship Between the Approved Persons Regime and Company Law......Page 94
Introduction......Page 99
Do the FSA's Proposals Meet the Canons of Good Regulation?......Page 102
Are Requirements on Firms and Individuals Consistent?......Page 103
Conclusion......Page 104
Introduction......Page 105
The New Regulatory Regime for Financial Services in the UK......Page 106
Broad Scheme of FSMA......Page 107
The Role of Discipline......Page 109
Regulatory Discipline and Criminal Law in the UK......Page 110
Regulatory Discipline and Article 6 of the ECHR......Page 111
Guidance from Other Jurisdictions......Page 115
Article 6 and the Market Abuse Regime......Page 119
Article 6 and the Disciplinary Regime for Authorised Firms and Approved Persons......Page 120
Conclusions......Page 122
Introduction: The Human Rights Act 1998......Page 125
The Financial Services and Markets Act 2000 and Human Rights......Page 126
Article 6 and the FSMA......Page 127
May a Disciplinary Charge be Classified as Criminal for the Purposes of the ECHR? If so, can the Impact of that be Reduced?......Page 129
Might Disciplinary or Market Abuse Charges be Regarded as Uncertain if Article 7 Applies?......Page 134
Introduction......Page 137
Legislative Mandate......Page 139
Internal Controls......Page 141
Ministerial Controls......Page 142
Parliamentary Controls......Page 143
Stakeholder Control......Page 145
Rule-Making......Page 147
Disciplinary and Enforcement Powers......Page 150
Redress......Page 152
Appeals......Page 153
Judicial Review......Page 154
Statutory Immunity......Page 155
Administrative Redress......Page 157
General Conclusion......Page 158
Can One Measure Success/Failure? The Contrast Between the Monetary Policy Committee and the Financial Service Authority......Page 161
Economic Objectives......Page 163
Cost/Benefit Analysis......Page 166
Rules of Conduct......Page 167
Transparency and Market Discipline......Page 169
Accountability......Page 172
Conclusions......Page 173
Accountability and Governance......Page 175
Definition of Accountability......Page 176
The Place of Transparency in the Framework of Accountability......Page 180
Transparency in the Framework of Accountability......Page 182
Independence and Accountability......Page 183
The Accountability of Independent Central Banks: The Example of the Bank of England......Page 184
The Accountability of the FSA......Page 187
Criteria of Assessment......Page 194
Concluding Remarks......Page 198
The Present State of the Regulation of Securities Markets in the EU......Page 199
Regulation of the Markets Under the Modified Trading Landscape......Page 203
The New Regulatory Pattern......Page 208
Conclusion......Page 220
Introduction......Page 221
Why Harmonise?......Page 223
The Current Position of the European Union......Page 224
The Case for an ESC......Page 230
Conclusion......Page 240
Postscript by the Author......Page 242
15.  New Issues in International Financial Regulation......Page 245
The Development of International Financial Regulation......Page 247
The Challenges Facing International Financial Regulation......Page 249
A Common Theoretical Framework......Page 254
Macroeconomic and Microeconomic Aspects of International Regulation......Page 255
Pro-Cyclical and Pro-Contafion Risk Management......Page 257
The Harmonisation of Risk Management in Differing Corporate Governance Structures......Page 259
The Political Challenge of Accountability in a Soft Law Regime......Page 260
Devising an Institutional Structure that Performs the Tasks of the Template WFA......Page 262
Summing-Up......Page 263
Background......Page 265
What is Different About the FSF?......Page 266
Codes and Standards......Page 269
Capital Flows......Page 271
Highly-Leveraged Institutions (HLIS)......Page 273
Offshore Financial Centres (OFCS)......Page 277
What Next for the FSF?......Page 279
The Need for International Regulation......Page 283
The Case of the Basel Framework of Banking Supervision......Page 290
The Role of a Global Supervisor......Page 298
Conclusion......Page 304
Introduction......Page 307
Analysis......Page 311
Multinational Considerations......Page 319
Conclusions......Page 320
19.  The Role of Credit Rating Agencies in the Establishment of Capital Standards for Financial Institutions in a Global Economy......Page 321
Background on Regulatory Incorporation of Credit Rating Agencies......Page 322
Rating Agencies Under the Basel Committee Proposals of June 1999......Page 324
Criticisms......Page 325
Alternative Approaches to Setting the Capital Requirements for Credit Risks......Page 328
Implications for the Basel Proposals for Regulatory Policy......Page 331
The Impact of Technology......Page 333
Issues for Regulators......Page 335
Conclusion......Page 339
Part II: Nasdaq......Page 340
Market Perspectives......Page 341
Market Regulator......Page 342
Online Issues......Page 343
Part III: London Stock Exchange......Page 345
Costs......Page 346
What do we Regulate?......Page 347
The Role of IT in Market Regulation......Page 348
Conclusion......Page 349
Index......Page 351