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

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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.

Secondly, Prudential Regulatory Authority (PRA) is another regulatory body that will inspire investor confidence. PRA was created as part of the Financial Services Act (FSA) and is responsible for the practical regulation and supervision of many banks, building societies, credit unions, insurers and major investment firms. They ensure than there is a general objective to promote safety of the firms it regulates, an objective specific to insurance firms, to contribute to the securing of appropriate protection for those who will become an insurance policyholder, lastly, an objective to facilitate effective competition. This is likely to inspire investor confidence because it will ensure customers that when they do business with banks, building societies, credit unions, insurers and major investment firms, all of their details and investment is safe meaning they are likely to be encouraged to invest due to it being safe.
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The Financial Ombudsman are likely to inspire confidence. It is an independent body that provides l investigation and ruling in complaints against UK financial services providers. It allows consumers to have access to a free service so that their complaints are examined and solved if they haven’t been treated fairly. This is going to invest confidence because customers have a place they can go to and be listened to. They will try their best to resolve any issues and customers are likely to invest knowing they have people to protect them.

The Financial Services Compensation Scheme (FSCS) ...

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