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Explain reasons why recent UK and EU legislation and regulatory decisions may be likely to inspire investor condence.

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Introduction

Transfer-Encoding: chunked I am working as a trainee TV journalist for ITV. ITV is planning to run a feature article on financial services. Following my research and investigation, I am going to explain the reasons why recent UK and EU legislation and regulatory decisions may be likely to inspire investor confidence in the UK financial services industry. The Financial Conduct Authority (FCA) are likely to inspire investor confidence in the UK financial services industry. FCA aim to make sure that financial markets work well so that consumers get a fair deal. This means that they ensure that the financial industry is run with honesty, first?s product customers with appropriate products and services and customers can trust that the firm has their best interests at heart. They are likely to inspire investor confidence because they make sure consumers are protected and treated fairly, they monitor which firms and individuals are able to enter the financial markets, making sure that they meet standards before they authorise them. When they find that firms are not following the rules, they intervene. This can mean stepping in to impose penalties, to stop them from trading or to secure compensation, and ensure that consumers receive the information they need in the right way, so they can make the best decisions for themselves. ...read more.

Middle

They are responsible for investigating mergers which could restrict competition, conducting market studies and investigations in markets where there may be competition and consumer problems, investigating where there may be breaches of UK or EU prohibitions against anti-competitive agreements and abuses of dominant positions, bringing criminal proceedings against individuals who commit the cartel offence, enforcing consumer protection legislation to tackle practices and market conditions that make it difficult for consumers to exercise choice, co-operating with sector regulators and encouraging them to use their competition powers and lastly, considering regulatory references and appeal. Due to the competition, services will provide new products. Customers are likely to invest if there are a range of products to pick from and decide themselves what is the best product for them. In the UK there is also Consumer Protection acts which contribute to inspire investor confidence. Consumer Credit act will inspire confidence because it gives a consumer a 14 day cooling off period to cancel the agreement if they are unhappy. Or if you have entered the contract at home or place of work, it is seven days. If you buy a product over the phone, online or by mail, Distance selling regulations give you a seven day cooling off period from the day after you receive the goods. ...read more.

Conclusion

Because they must obtain authorisation, it means every product is safe and customers are likely to invest knowing exact what their investment is going towards. 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. This is likely to inspire investor confidence because the main goal is to protect investors and therefore they will feel safe knowing they are protected from any wrong doings. 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. Investor confidence will increase because it ensure that financial institutions have enough capital on account to meet obligations and absorb unexpected losses so the investors can be assured the banks and building societies have money for their investments. In conclusion, there are many legislations and regulatory bodies that will inspire investor confidence. It?s important to have these in place to ensure that investors feel like their investments are secure which will mean they are more likely to invest in a larger range of products. ...read more.

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