Principles of good regulation, Financial Management

Principles of Good Regulation

While performing its functions, the FSA needs to take into account certain matters which are termed the ‘principles of good regulation'. The matters like:

  1. Efficiency and economy: The use of the available UK resources in the most efficient and economic way.
  2. Risk management and controls within firms: A firm's senior management is responsible for its activities and for ensuring that its business complies with regulatory requirements. Thus, FSA may hold the senior management responsible for risk management and controls within firms.
  3. Restrictions and benefits: The restrictions imposed on the industry shall be proportionate to the benefits that are expected to result from those restrictions.
  4. Innovations and regulations: Allowing scope for different means of compliance so as not to unduly restrict market participants from launching new financial products and services.
  5. International character of financial services and the competitive position of UK: The cooperation with the overseas regulators in order to meet the international standards and to monitor global firms and markets effectively.
  6. Rules and practices on competition: Minimizes the adverse effects on competition that may arise from its activities and the desirability of facilitating competition between the firms which it regulates.

In addition to its statutory objectives, FSA also has other objectives like:

  • Political and Public Accountability: The annual report contains an assessment of the extent to which it has met these objectives. Scrutiny of the FSA by Parliamentary Committees may focus on how it achieve its objectives.
  • Exhibiting the Way it Carry Out our General Functions: For example, it is duty bound to show how the draft rules relate to its statutory objectives are beneficial to the consumer.
  • Assisting in Providing Legal Accountability: The reason is if it interprets the objectives wrongly, or fail to consider them, it can be challenged in the courts by judicial review.

 

Posted Date: 9/11/2012 2:39:33 AM | Location : United States







Related Discussions:- Principles of good regulation, Assignment Help, Ask Question on Principles of good regulation, Get Answer, Expert's Help, Principles of good regulation Discussions

Write discussion on Principles of good regulation
Your posts are moderated
Related Questions
Q. Illustrate the method of appraising capital investments? One of the potency of internal rate of return (IRR) as a method of appraising capital investments is that it is a di

Regulatory Aspect Employees Provident Fund Organization (EPFO) is under the Ministry of Labor and is a primary organization for retirement income for private employees in India

Eatmore & Green Pty. Ltd (Australia) is a successful medium sized marketing consultancy for Australian agricultural products and Australian sourced organic, natural beauty/cosmetic

the following information related to sun ltd.paid-up capital-1000000. earnings of the co-100000. dividend paid-80000. price-earning ratio(pie)-20. no of equity shares-100000.find o

FORMS OF DIVIDEND Cash Dividend Many Companies pay dividend in cash. Often cash dividend may be supplemented by a bonus issue (stock dividend).  When the company chooses

Q. Limitation of weighted average cost of the capital? 1) Determine the Weight; the first and foremost difficulty in computing the average cost is to an easy job. This type of

Why do total assets equal the sum of total liabilities and equity?Explain. Assets = Liabilities + Equity Assets are the entities of value a business owns. Liabilities ar

Duration and Convexity of MBS A graph decpicting the price of the security under study and the interest rates helps in assessing the duratio

Q. Give subject matter of participation? Subject matter of participation by and large the workers interests in participation varies with the nature of issues' involved in parti