Financial Services Law Essay Example | Topics and Well Written Essays - 2250 words

financial Services Law - Essay ExampleThe Securities and enthronization Board (SIB) was the over-all regulator of the investment businesses in the United Kingdom down the stairs the Finance Services Act 1986. The SIB is assisted by several-self regulating organizations and recognized professional bodies. The self-regulating bodies used to be the Securities and Futures Authority Limited (SFA) Investment Management Regulatory Organization (MRO) Financial Intermediaries, Managers, and Brokers Regulatory Association (FIMBRA) and Life Assurance Unit Trust Regulatory Organization (LAUTRO).5Because of the some(prenominal) regulatory bodies involved, many rules and regulations were enacted, thus confusion in the enforcement of Old Act did arise. There was a fear on the part of the those involved in the selling of pecuniary operate and they cannot give advice to their clients the way they want because of the fear that they will contravene the regulatory code and there was a heavy fine o n the part of the financial service firm in case of bad advice given to clients.6 Another negative effect may be is that there was confusion on what operation to apply in the investigation of offences and the enforcement of appropriate actions the Old Act considering the number of regulations produced by the number of self-regulating bodies involvedThe Financial Services and Markets Act 2000In the year 2000, a new legislation was passed replacing the Old Act. The New Act is called the Finance Services and Markets Act 2000 (hereinto referred as the New Act or FSMA). It received Royal Assent on 14 June 2000 and was brought into force at midnight on 30 November 2001, commonly known at that time as N2. low the FSMA, the Securities and Investment Board (SIB) and the supporting regulatory bodies low the Old Act were replaced with the Finance Services Authority (FSA) as the over-all regulator of the Act. The FSA became the super-regulator of the Act, being fully in force from 30 Novembe r 2001. Under the FSMA, the FSA has four objectives maintaining market confidence promoting public understanding of the financial system the protection of the consumer and fighting financial crimes.7 Key Changes under the FSMAThe FSMA retained the fundamental principle of the Old Act8. Aside from establishing the FSA as the super-regulating body, the FSMA also introduced significant changes to UK financial services law, to include91) a revised Financial Promotion lineation 2) powers to impose penalties for market abuse 3) regulation, marketing and promotion of collective investment schemes 4) recognition of investment exchanges and clearing houses 5) delegation to the London Stock Excahnge of the relevant powers to correct listingactivity and to approve all prospectuses6) establishment of a Single Ombusdman and compensation scheme, replacing thevarious schemes already in existence, to provide further protection to consumers7) establishment of a Financial Services and Markets Tribu nal (FSMT) to hear appealsagainst decisions of the FSA.For European or International considerations, the