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Describe the key features of UK and EU nancial service legislation and regulation likely to inspire investor condence.

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Introduction

Transfer-Encoding: chunked I am working as a trainee TV journalist for ITV. ITV are planning to run a feature article on financial services that they would like my help on. My feature article will include and describe key features of UK and EU financial service legislation and regulation likely to inspire investor confidence. Investor confidence is likely to improve due to legislations. There are many legislations that can help inspire investor confidence in the form of Banking Act 1987 and Building Societies Act 1986. The Banking Act removes the barriers to competition in financial services, going towards a ?one-stop financial service shop? which measures capital base to minimise possibility of banking failures. The Buildings Societies Act is an act of Parliament of the UK governing building societies. It removed particular restrictions on the range of services they could offer so they could compete with banks. They could now offer loans, cheque accounts, exchange currencies, provide stockbroking services and much more. The Building Societies Commission was set up to supervise the activities of the societies which were allowed to become public limited companies. Both legislations both affect the way they operate and must run in line with the legislations. Regulatory bodies also inspire investors in the UK. ...read more.

Middle

In the UK there is also Consumer Protection acts which contribute to inspire investor confidence. First is Consumer Credit Act. This act is a piece of legislation which regulates consumer credit and consumer hire agreements. These agreements include personal loans, hire-purchase agreements, credit cards and store cards. The act regulates content and enforcement of agreements and provides for rights and obligations for both consumers and traders, requires that traders who make use of credit facilities obtain a consumer credit licence from the Office of Fair Trading, provides ?truth in lending? by showing the total cost of credit in the form of the Annual Percentage Rate, sets out procedures to be used in the event of default, termination or early settlement of an agreement and early settlement of an agreement and gives courts power to grant relief to consumers who have entered overpriced credit transactions. Data protection is another consumer protection. This act defines UK law on the processing of data on identifiable living people. It is the main piece of legislation that governs the protection of personal data in the UK. The Data Protection Act creates rights for those who have their data stored, and responsibilities for those who store, process or transmit such data. The person who has their data processed has the right to view the data an organisations holds on them, request that incorrect ...read more.

Conclusion

If operating in another state they must gain authorisation. To gain authorisation an insurance company must limit its operations to insurance only, submit a scheme of operations, be run by people of high standing and have a minimum guarantee fund. Furthermore, another EU directive is investment services directive aims to enable investment firms to operate in different European states. It aims to provide direct access to well-regulated markets across the EU and established basic requirements including and firms that provide certain specified investment services in the EU must obtain authorisation in their home state, firms authorised in that way can then operate in other EU states. Additionally, the Capital Adequacy Directive applies to the trading book of credit intuitions and to investment firms that are subject to the provisions. The three main objectives are protect investors, establish a level playing field between credit institutions and non-bank investment organisations and to enhance the standing of the EU as a financial centre. Lastly, the New Basel Accord wants to develop more risk-sensitive standardised and internal approaches to capital adequacy, aligning capital adequacy assessment more closely the key elements of banking risk. The proposed new framework mutually reinforced minimum capital requirements, supervisory review process and effective use of market discipline. Overall, in the UK and EU we have legislations, regulatory bodies, consumer protection and EU legislation and directives that if present, inspire investor confidence. ...read more.

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