We discuss the consequences of liberalization on capital market performance. Greater autonomy is expected to bring efficiency, profit and augmented welfare. In some cases, this higher autonomy has also been connected to episodes of fraud. We discuss the role a regulatory activity can play into...

The purpose of the paper is to offer an analytical framework for the Treating Customers Fairly initiative of the Financial Services Authority. The TCF agenda is set in the context of theory of consumer behaviour. The central theme is that retail financial transactions are fundamentally different...

This paper examines the implementation of best practices for fund directors as outlined by the Investment Company Institute (ICI) in the summer of 1999. Following a series of well publicised scandals across the financial services industry, the issue of corporate governance within mutual funds is...

Basel II and the EU CRD introduce, for the first time, specific Operational Risk requirements for credit institutions and investment firms. With less than 2 years available to prepare for the introduction of the simpler Operational Risk approaches, some firms would find it useful for the FSA to...

This paper summarises the FSA's enforcement action taken to date under the market abuse regime and considers how the implementation of the Market Abuse Directive (‘MAD’) will affect the work of city compliance officers. In particular, this paper focuses on the new requirement for the...

The purpose of this paper is to provide banking regulators with another tool to crosscheck the appropriateness and consistency of levels of capital adequacy for banks. The process begins by examining banking systems and focuses on market risks and the systemic risks associated with growing...

This study examines whether a regulation on mandatory disclosure of financial forecasts since June 1991 and further sanction imposition since March 1998 contribute to lower IPO firms’ initial and aftermarket returns, and shorten honeymoon periods. The study is based on 423 IPO firms after the...

The Lamfalussy process was implemented from early 2001, following the report of the Committee of Wise Men on the Regulation of European Securities Markets, chaired by Alexandre Lamfalussy. Four years on, this paper concludes that, while it is too early to assess progress in areas such as...

This paper provides a comprehensive overview of the gradual evolution of the supervisory policy adopted by the Basel Committee for the regulatory treatment of asset securitisation. The pathology of the new “securitisation framework” is carefully highlighted to facilitate a general...

In financial services, creating and implementing an appropriate and effective compliance-monitoring programme is a challenge, which differs according to the company. All aspects must be considered - compliance, risk, internal audit, management. Essentially, senior management must be wholly...