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

Authors Avatar by ellouise1997hotmailcom (student)

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. There are many regulatory bodies including Financial Conduct Authority (FCA). 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.

Secondly, Prudential Regulatory Authority (PRA) is another regulatory body. 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.
Join now!

Moreover, Mortgage Code Compliance Board (MCCB). The role of the mortgage code compliance board is to ensure that customers are fully informed and adequately protected when taking out a mortgage. All lenders registered with the board must adhere to the standards set out in the mortgage code.

Furthermore, General Insurance Standards Council (GISC) is an independent organisation which was set up to regulate the sales, advisory and service standards of members. Its purpose is to make sure that insurance customers are treated fairly.

Occupational Pension Regulatory Authority (OPRA) is a non-departmental public body which holds ...

This is a preview of the whole essay