bluuebunny/crossref_metadata_2025 huggingface dataset:
COMPUTER AND INFORMATION LITERACY: CHALLENGES FOR THE MODERN INFORMATION PROFESSIONAL AT THE ADVENT OF THE XXI CENTURY
Authors: Sreenivasulu V.
Published: January 2008

[Editor's note: this contribution is a presentation given by the author at the International Federation for Information and Documentation Education and Training Pre‐Conference held in Jaipur, India, 12–13 October, 1998. The complete paper in the FID/ET Proceedings was co‐authored by Dr. S.P. Sood and Smt. Prabha Krishnan. The matrix showing the knowledge base and the required computer and information literacy skills is recommended for use as a checklist by all institutions involved in education for library and information science].
ONE‐STOP FINANCIAL SHOPPING — IN SEARCH OF CONSUMER MARKETS
Authors: de B. Wijnholds Heiko , Little Michael W.
Published: January 2008

One‐stop financial shopping at major retailers has so far proved to be less of a boon than was expected. Early consumer studies point to problems with consumer acceptance, customer satisfaction, market segments, and marketing programs. There is no denying the existence of tantalizing opportunities, but most providers have failed to capitalize on these possibilities. The authors suggest that such firms adopt a different approach. The best approach for surmounting these problems and capitalizing on the existing opportunities is (1) proper market segmentation, (2) target marketing, and (3) well‐suited marketing strategies. Nontraditional providers should stop trying to be all things to all customers; they should be more selective and precise in their offerings. More specifically, findings indicate: 1. Consumers who feel comfortable shopping one‐stop financial services do so conditionally. The major retailers' lack of expertise in financial services and the questionable ability of personnel are primary areas of concern. 2. The relatively small segment of consumers who feel comfortable shopping for financial services offered by retailers prefer the convenience of the one‐stop service. Also these consumers accept favorably the national retail chains because of their established reputations. 3. Retailers offering financial services have had problems in identifying target markets and developing satisfied and repeat customers. Nevertheless, opportunities do exist if cross‐selling of present offerings to selected markets can be further cultivated.
GOING GLOBAL: HOW TO JOIN THE SECOND MAJOR REVOLUTION IN ADVERTISING
Authors: Jordan Robert O.
Published: January 2008

The Two Revolutions in Advertising. Dr. Shoop's Restorative was a patent medicine sold around the turn of the century. It allegedly cured shingles, rickets, the grippe, the vapors, neuritis, and neuralgia. It also changed the course of advertising. One day in 1904 a couple of young ad men, Ambrose Thomas and Albert Lasker, were sitting in their Chicago offices when a messenger arrived with a note. “I am downstairs at the saloon,” it said, “and I can tell you what advertising is.” When Thomas and Lasker went down to investigate, they found an imposing fellow named John E. Kennedy, a former member of the Royal Canadian Mounted Police who had more recently been employed as a copywriter for Dr. Shoop's Restorative. Several hours and many drinks later, they hired Kennedy at a salary of $28,000 a year—fantastic money in those days. But Kennedy eventually made them very rich, and his concept made advertising the $170 billion global industry it is today.
GENERATING MARKETING IDEAS WHEN FORMAL RESEARCH IS NOT AVAILABLE
Authors: Del Vecchio Eugene
Published: January 2008

While worldwide revenues for the 44 leading market research companies exceeded $1.5 billion in 1985, there are still many marketing executives who can't afford to institute a full research program. Small, growing firms, for example, often need capital for other endeavors. Even larger companies have been slashing research budgets recently due to financial belt‐tightening. What are they to do? Where are they to get direction for new products, services, promotions, advertising, and so forth, if not from the research department?
COMMENTARY SOFT DATA—HARD DATA: THE PAINFUL ART OF FENCE‐SITTING
Authors: Seymour Daniel
Published: January 2008

Quantitative methodology and qualitative methodology are not mutually exclusive. Yet much of consumer research is undertaken from the point of view that an object or state should either be counted, weighed, and measured or be described in terms of human feelings and intuitions. By development of a long‐run orientation and a pluralistic approach to research designs, soft data and hard data can be combined in complementary ways. This commentary suggests a practical combination of research methods and uses a recent case example to illustrate.
USING THE LIST OF VALUES (LOV) TO UNDERSTAND CONSUMERS
Authors: Kahle Lynn R. , Kennedy Patricia
Published: January 2008

Research on social values has been shown to be beneficial in market segmentation. This article describes the List of Values (LOV), a methodology that may allow comparison and contrast of values. Details of the methodology and recent research using it are described, and data analysis strategies are discussed.
COMPETITION AND THE PROTECTION OF CUSTOMERS IN THE WATER AND SEWERAGE INDUSTRIES — A CITIZENS' CHARTER?
Authors: MERRY ALLAN
Published: January 2008

The paper outlines the main statutory provisions which apply to the water and sewerage industry and, in so doing, it considers the regulatory duties and powers of the Director General of Water Services. In particular, reference is made to redress for customers, resolution of disputes, cross‐subsidisation and transfer pricing, and the promotion of competition within the industry.
THE PRIVILEGE AGAINST SELF‐INCRIMINATION
Authors: ROSEN MURRAY
Published: January 2008

This briefing reviews the historical and recent development of the privilege against self‐incrimination and its partiadar relevance in the field of financial regulation. The author discusses the idea of a ‘qualified’ privilege against self‐incrimination. Under such an approach the privilege is excluded for some uses (such as to discover misconduct and to enable restitution to victims of fraud) but not so as to enable witnesses' answers to be used for their own criminal punishment.
BCCI: THE LESSONS FOR BANK SUPERVISORS PART 1: DEFICIENCIES IN NATIONAL SUPERVISORY PRACTICES AND REGULATORY FRAMEWORKS
Authors: HALL MAXIMILIAN J.B.
Published: January 2008

This paper is published in two parts. The first, which is published here, starts by considering the background to UK banking supervision and examining the effectiveness of the Bank of England and BCCI's auditors in the supervision of BCCI. The author then assesses the suitability of the Banking Act 19.87 following which is a list of recommended reform measures. The first part of the paper concludes with a consideration of banking supervision in Luxembourg. Part two of the paper examines deficiencies in the international supervision of banking and will be published in the next issue of The International Journal of Regulatory Law and Practice, Volume 1 Number 3.
WHAT IS INVESTMENT BUSINESS?
Authors: ROSENTHAL DENNIS
Published: January 2008

Section 1(2) of the Financial Services Act 1986 (the Act) defines ‘investment business’ as the business of engaging in one or more of the activities which fall within the paragraphs in Part II of Schedule I to the Act and are not excluded by Part III of that Schedule. The word ‘business’ is not defined — a rather common feature of legislation. It clearly means more than merely engaging in one or more of the activities referred to. Moreover, it is submitted that it means more than merely the activity of engaging in any of those activities. This briefing examines some meanings which have been given to the word ‘business’ and possible applications of that word in the context of the Act.
THE LAUTRO RULES: TRAINING AND COMPETENCE
Authors: WILLEY STUART
Published: January 2008

The purpose of this paper is to summarise the initiatives taken by the Life Assurance and Unit Trust Regulatory Organisation (Lautro) in the field of training and competence. This is a timely opportunity for doing so. Lautro members are currently in the midst of an implementation programme designed to usher in a significant new set of regulatory requirements addressing training and competence issues. As explained below, a central plank of the programme is the requirement for member firms to establish and maintain in‐house training and assessment arrangements which meet standards set by Lautro. Those arrangements must focus upon individual advisers who sell the member's contracts and services to investors. The overall aim is to secure an adequate degree of investor protection by ensuring that individual advisers in the life, pensions and unit trust market are competent.
BCCI: THE LESSONS FOR BANK SUPERVISORS PART 2: DEFICIENCIES IN INTERNATIONAL SUPERVISORY ARRANGEMENTS
Authors: HALL MAXIMILIAN J.B.
Published: January 2008

This is the second of a two‐part paper, the first part of which was published in The International Journal of Regulatory Law & Practice Volume 1 Number 2, pp. 170–184. This part considers some of the multinational initiatives that have been undertaken for the supervision of international banks both within the EC and outside it. Deficiencies in the international arrangements for bank supervision are noted before some suggestions for reform are set out. The author concludes with a timetable of events outlining BCCI's history.
THE ROLE OF THE COMPLIANCE OFFICER: THE INFLUENCE OF CULTURE AND COMPANY CONSTITUTION
Authors: Cruickshanks M.
Published: January 2008

This paper addresses the paradox that five years after the implementation of the Financial Services Act and despite the apparent mandatory nature of the compliance officer's function, no clear detailed definition or description of the role has emerged. By tracing the origins of the office through the legislation and regulation, the paper suggests that the general perception of the function derives only from the common responsibilities. The difficulty of further refining this perception is demonstrated by reference to several company or employer‐specific constitutional and cultural constraints. The paper concludes that, despite the importance of establishing a detailed understanding of the compliance function, assessment of the compliance officer's role will continue to be based on those elements of the function which are common to all and exclude those aspects which are unique to particular companies or groups.
NEGLIGENCE LAW SUITS AND THE ACCOUNTANT
Authors: TRAPP ROGER
Published: January 2008

The paper argues that increasing litigation and expanding claims on both sides of the Atlantic are threatening the survival of even the largest accounting practices. In the UK, firms are so concerned that they are making reform of the liability system the price of accepting wider responsibility for their audit work.
THE IMPACT OF THE GOODE COMMITTEE REPORT ON SMALL PENSION SCHEMES
Authors: RITCHIE STEWART
Published: January 2008

The underlying theme of the Goode Committee Report is first to define the pension promise and then to make as sure as possible that it is met.
CENTRAL EUROPEAN ECONOMIES AND THE FINANCES OF INTERNATIONAL ORGANISED CRIME
Authors: RIDLEY NICHOLAS
Published: January 2008

After considering the transformation of organised crime since the 1960s, the paper summarises the political and economic conditions in the Soviet Union which encouraged the spread of organised crime. It then considers the example provided by the development of the ‘black economy’ in Hungary, the current position of organised crime in the Russian Federation and the comparative ineffectiveness of countermeasures against financial crime in central Europe. The paper concludes that, especially in the light of UK legislation and the EC Directive on money laundering, UK‐based companies and financial institutions need to exercise the utmost vigilance in their transaction recording and reporting.
A CRITICAL EVALUATION OF THE COMPLIANCE ADMINISTRATIVE CONTROL SYSTEM WITHIN ALBERT E SHARP AND ITS MOTIVATIONAL IMPACT UPON THOSE IT IS SUPPOSED TO CONTROL
Authors: HAGLAND GARY
Published: January 2008

Schedule 2 of the Financial Services Act 1986 (FSA) was amended by s. 204(1) of the Companies Act 1989 to make it incumbent on self‐regulatory organisations (SROs) to have a satisfactory mechanism to take account of cost factors in compliance. Critically, however, published regulatory guidelines for the assessment of cost of compliance fail to address a key and fundamental quantitative aspect of the entire industry equation — that of people and the impact of a compliance based control administration upon their individual professional motivation. This paper attempts to evaluate critically such a compliance administrative control system on the employees of an FSA authorised financial institution.
THE IMPACT OF GLOBALISATION ON TODAY'S BUSINESS, AND WHY INFORMATION SYSTEM SECURITY IS STRATEGIC
Authors: ANGELL IAN O.
Published: January 2008

In this paper Professor Angell gives his predictions for the effect of global communication networks on the world economy and in particular on governmental and company structures at both macro and micro levels. He then relates this to the central position of information systems within management, in turn demonstrating the fundamental role of information systems (IS) security in the running of every company. In the light of these globalisation pressures he stresses that companies can no longer treat security issues as the poor relation — for that is merely trusting to luck in the face of growing organisational complexity. The basic message of the paper is that the security of business systems, particularly of telecommunication applications, must be placed at the core of every business. However, for this to happen he says that the very concept of security must be redefined, and the security community must start preparing itself now for its major new role in the future of management.
PENSION TRANSFERS: MANAGING COMPLIANCE
Authors: CUNLIFFE JOHN , MINGLE STEVE
Published: January 2008

This paper discusses two aspects of compliance management in pension transfers. The first addresses the claims that may be brought before a court by investors to whom personal pension schemes were mis‐sold. The second looks at the Securities and Investments Board (SIB) guidelines on the procedures to be followed by the personal pension providers in determining the extent, if any, to which compensation to individuals will be required.
THE PREVENTION OF MISLEADING ACCOUNTS THROUGH DISCLOSURES OF RELATED PARTY TRANSACTIONS
Authors: COTTINGHAM JULIET , HUSSEY ROGER
Published: January 2008

The published annual report and accounts of a company are regarded as a main source of information for making investment and other decisions. One assumption used by readers of such accounts is that the financial statements reflect transactions which have been made at arm's‐length. However, the presence of related parties may mean that free market dealings do not exist. In this case the accounts are, at best, misleading and, at worst, fraud may have been perpetrated. Although a number of countries have issued accounting standards which require companies to disclose certain information in respect of related party transactions, this had not occurred in the UK by the summer of 1995. A proposal had been issued by the Accounting Standards Committee (ASC), but this received severe criticism and could not be amended before the ASC was disbanded. Its successor body, the Accounting Standards Board (ASB) has issued its own proposals, taking into account some of the earlier criticisms. The proposals attempt to define related parties, the transactions which are entered into and the disclosures which should take place. The most recent proposals have also received severe criticism mainly because of the additional work entailed for companies and their auditors in relation to the possible benefits to be gained by the users. An examination of the new proposals reveal that there are some definitional problems and that it is far from certain that the disclosures will do more than alert the reader to the presence of related party transactions, nor is it certain that the disclosures will provide information which is useful for sophisticated decision making and it would be naive to believe that such disclosures would prevent fraud.
YASUDA FIRE & MARINE INSURANCE CO OF EUROPE LTD V ORION MARINE INSURANCE UNDERWRITING AGENCY LTD AND ANOTHER
Authors: COLMAN J
Published: January 2008

The Defendants, two associated companies, acted as underwriting agents for the Plaintiff under various underwriting agency agreements. The agreements were terminated and ceased to operate for further underwriting at the end of 1991, but the Defendants were authorised to continue to manage the run‐off in relation to risks written on behalf of the Plaintiff. Each of the agreements, by cl. 4.2, contained an express provision whereby the Plaintiff was entitled to inspect and take extracts from or make copies of ‘all necessary books, accounts, records and other documentation’ appertaining to the insurance business transacted on the Plaintiffs behalf, although the records were to be the property of the Defendants.
COMPLIANCE CULTURE
Authors: JENKINSON DAN
Published: January 2008

There is much talk of ‘compliance culture’ and, latterly, ‘compliance ethos’ and it is generally assumed that this is a good thing, by definition. This paper suggests that the existence of a compliance culture is never in doubt — all firms have one, the question is what is its orientation? The paper proposes three possible states of a compliance culture and suggests some qualitative measures of a positive or pro‐compliance culture. The paper is an extract from a submission made to NatWest Life's Audit and Compliance Committee in February 1995.
THE CADBURY CODE ‘COMPLIANCE REPORT’
Authors: BELCHER ALICE
Published: January 2008

This paper critically reviews the contents of the ‘Compliance Report’ published by the Cadbury Committee in May 1995. The Compliance Report could be seen as a rather self‐congratulatory farewell from the original Cadbury Committee before their successor body, known for the moment as Cadbury II, takes over the task of reviewing corporate governance issues and making recommendations. This paper concludes that the Compliance Report is both disappointing and complacent.
BOOK REVIEWS
Authors: Gray Joanna
Published: January 2008

Regulation and compliance professionals and students of regulation will find these books interesting and thought provoking. Although many a reader would be justifiably sceptical about a book with ‘The Future of…’ in its title Alan Gait's work contains so much valuable historical detail about US banking, insurance and securities regulation that it manages to avoid being just another journalistic work of financial punditry. It is an ambitious book and raises some very big questions in the introduction. Was regulation of financial markets and institutions called for in the 1930s? Was deregulation of financial markets and institutions called for in the 1970s and 1980s? Is reregulation of financial institutions called for in the 1990s? What changes in regulation and financial structure are likely to take place by the year 2000? It seeks to answer these and many (almost too many) other questions by casting a historical perspective on each of the three industries, examining issues like structural change, the impact of technology and the future of all of the major players within the financial services industry and asking what they bode for the future of regulation. For those prepared to read all 386 pages it is a mine of information and, to a lesser degree, insights providing an excellent overview of the past, present and possible future US regulatory scene. However, the book has been written with the busy professional in mind who may be interested only in one of the three industries covered and so it has been designed to be read as a handbook into which one can dip and read only, say, the banking chapters, this automatically detracts from the book's ability to provide a sustained and layered intellectual analysis of some of the big questions asked in the introduction and leaves the reader with the impression of a descriptive account. Subject to that caveat the reader who wishes to deepen their knowledge of the US regulatory scene will enjoy the historical chapter on securities and investment regulation 1940–79 and the chapter on deposit insurance and bank failures puts the Savings and Loans debacle into perspective. Part Four on future prospects for regulation lacks rigour and detail but a useful glossary of US financial terms appears at the end of the book as does an Appendix of major legislation affecting US depository institutions which could have been usefully extended to cover securities and insurance legislation too.
THE FUTURE OF COMPLIANCE IN RETAIL FINANCIAL SERVICES
Authors: HUDSON ROBERT , KEASEY KEVIN , LITTLER KEVIN
Published: January 2008

If the UK retail financial services sector is to seize the opportunities which will emerge in the future, it will be necessary to restore consumer confidence in the market. This paper argues that this will only be achieved through a radical transformation in the nature of regulatory compliance. The roots of the current consumer crisis of confidence are exposed by retracing the recent history of the sector; particular consideration is given to how the sector has responded to the changing political, economic and regulatory conditions of the post‐War era. It is possible to characterise the sector prior to the 1980s as somewhat anti‐competitive and lacking in innovation. Changes during the 1980s led to highly favourable business conditions, without stringent regulation, making it easy and profitable for the sector to continue to be short term in outlook without considering the longer‐term consequences for consumer confidence. Not surprisingly, the drive for short‐term profits led to the exploitation of many consumers and the subsequent scandals have reduced general confidence in the sector and also resulted in a regulatory backlash. Demographic changes and an emerging political consensus on a reduction in state welfare provision mean that the future business environmnent is potentially very promising. However, if the sector and its constituent organisations do not evolve to regain the trust of consumers and satisfy the demands of their regulators they will face severe competition from outside competitors and an even more hostile regulatory environment. Many of the organisations in the sector will need a complete overhaul in their attitudes to compliance if they are to succeed. Current approaches to developing internal compliance cultures may not be enough but emerging technology may soon provide a revolutionary new approach.
THE BROKER‐DEALER EXAMINATION PROGRAMME OF THE SEC
Authors: ANN GADZIALA MARY
Published: January 2008

The examination of broker‐dealers is an integral part of the United States Securities and Exchange commission's overall responsibility to enforce securities laws, protect investors, and ensure the maintenance of fair and orderly markets. This programme continues to evolve to keep pace with dynamic market developments. This paper provides an overview of the broker‐dealer examination process, and discusses several new developments in the examination programme. Particular focus is directed to the oversight of internal controls and risk management, and review of sales practices and supervisory procedures. Finally, there is a discussion of efforts undertaken to coordinate examinations by various state, federal and self‐regulatory authorities.
Cost‐benefit analysis and compliance culture
Authors: Alfon Isaac
Published: January 2008

The increasing use of cost‐benefit analysis (CBA) in financial regulation is bringing a sharper focus on the benefits conferred by regulation. This paper addresses the impact of that sharper focus on the compliance culture of regulated firms. Why focus on the benefits of regulation? What does CBA have to offer to the compliance culture of authorised firms? How does the introduction of CBA fit in with other developments in the regulatory arena? This paper offers some tentative answers to these questions.
Standards and qualities expected of compliance staff
Authors: McMurray Gordon
Published: January 2008

This paper sets out to examine, on an elemental basis, the key standards and qualities expected of compliance staff and the difficulties that breakdown in the compliance systems can cause. It is aimed at both seasoned campaigners and new starts alike. If it prompts thought it has achieved its goal.
Labour's proposals for regulation into the 21st century
Authors: O'Brien Mike
Published: January 2008

It is clear that the regulation of the financial services sector in Britain needs reform. The aim should be to ensure that high standards are maintained and that consumer protection is enhanced.
Human rights and the investigation of fraud Saunders v United Kingdom
Authors: Gray Joanna
Published: January 2008

This case arose out of the criminal trial in 1990 of Mr Ernest Saunders, the former chief executive of Guinness plc, on charges of conspiracy, theft and false accounting for his role in the unlawful share support operation conducted by Guinness plc during the course of its 1986 contested takeover bid for Distillers plc.
Deregulation: The impact on a compliance officer — PIA interactions
Authors: Thomas Wyn
Published: January 2008

This paper considers, from a compliance officer's viewpoint, the interaction between financial services firms and the PIA. This relationship is looked at in the context of Project Evolution and recommendations for improving the relationship are made.
The impact of electronic trading on regulatory surveillance
Authors: Sherwood Amanda
Published: January 2008

This paper examines the impact of electronic trading on the regulation of the financial services industry and the improvements that are required to the current regulatory structure. Comments are addressed particularly to the wholesale markets, although many of them can certainly be applied to the sale of retail financial services by electronic means. The paper takes the widest definition of electronic trading, that is, the entire process from initiating the order to effecting settlement. In the latter part of this paper the opportunities for automated regulation are discussed. There already exists a certain amount of automated monitoring of trading. For example, the London Stock Exchange (LSE) and the Securities and Futures Authority (SFA) have both implemented transaction monitoring systems based on a transaction database fed by automated reports from authorised firms. At the settlements end of the process, CREST monitors settlement performance itself and publishes its statistics in the interests of an orderly market. While there will certainly be further developments to improve monitoring of market operations it is not the major issue with regard to electronic trading. What these developments do reflect, however, is that the regulators have an interest not only in the entire investment business in aspects such as market integrity and best execution, but also in settlement efficiency.
Cross‐border regulatory issues achieving good compliance in an international environment
Authors: Fry Fiona
Published: January 2008

IMRO's disciplinary action against Jardine Fleming in the summer of 1996 demonstrated the problems and dangers associated with the operation and control of delegates, particularly those located in remote jurisdictions. The author, who is Head of Investigations at IMRO, explores the issues that arise when setting up such arrangements and in monitoring them once they are in place and sets out criteria for ensuring effective delegation.
BCCI International (Overseas) Ltd and Price Waterhouse, Ernst & Whinney, and Abu Dhabi and the Bank of England
Authors: Laddie J , Gray Joanna
Published: January 2008

This application arose against the factual background of the ongoing litigation being brought by BCCI liquidators against the former auditors of the various BCCI companies. The defendants in that litigation are partners in Price Waterhouse and partners in Ernst & Whinney and the actions comprised in that litigation relate to the performance of their audits of BCCI companies throughout the 1980s. The legal and factual issues raised in that litigation are extremely complex and include the way in which Price Water‐house and Ernst & Whinney discharged various duties owed, including auditing duties, to BCCI companies. Discovery in that main litigation was proving a difficult and protracted process but the parties to it were attempting to agree lists of documents pertinent to the litigation which would be exchanged as part of the discovery process. Originally those lists included a considerable number of documents which had been assembled and obtained by Price Waterhouse to pass on to the Bank of England as part of its supervision and investigation of the BCCI group under the Banking Act 1987. All the parties to the main litigation agreed that those documents were of great importance to the determination of the actions involved but the legal advisers to Price Waterhouse were concerned that their inclusion in the discovery process may expose them and their clients to criminal sanctions for contravention of s.82(1) of the Banking Act 1987 which provides:
New developments in the changing structure of financial regulation
Authors: Gray Joanna
Published: January 2008

On 28th October, the SIB changed its name to the Financial Services Authority (FSA). The FSA will exercise all the functions which the SIB had under the Financial Services Act 1986 and continues to be the designated agency under the Act. The name change of itself does not alter the supervision of recognised bodies, nor the regulation of directly regulated firms, collective investment schemes or service companies. Over the next two years the FSA will acquire its full range of powers in two further stages. First, the Bank of England Bill will transfer from the Bank to the FSA responsibility for supervising banks, wholesale money market institutions and ECHO, the foreign exchange clearing house. Second, the proposed financial regulatory reform Bill will create a new statutory regime under which the FSA will acquire regulatory and registration functions currently exercised by the outstanding regulatory bodies.
Website review
Authors: Kendrick Martyn
Published: January 2008

This website review will consider some selected websites that are of particular interest to anyone with an interest in risk management.
J. Rothschild Assurance plc v John Robert Collyear (First Defendant) and others
Authors: Rix J
Published: January 2008

The Plaintiff, J. Rothschild Assurance plc, is a life assurance company. This case arose out of the review of pensions mis‐selling and the Plaintiff sought to be indemnified by its professional indemnity insurers for the losses it had or may yet incur as a result of having to compensate investors pursuant to the review of pensions mis‐selling. The first Defendant, Mr Collyear, is a representative Lloyd's Underwriter, as are some of the other Defendants (the remainder of the Defendants being insurance companies). All the Defendants had subscribed to three ‘claims made’ indemnity insurance policies which together extended cover of some £20m, covering the period 1st February, 1993 until 31st January, 1994 and were identical in all terms material to this action. Because the Plaintiff was seeking indemnity in respect of so many different individual cases of compensation Mr Justice Clarke had, at an earlier hearing on 10th February, 1998, ordered a maximum of ten sample claims to be tried and all other proceedings stayed. It subsequently transpired that both parties agreed that neither were in a position to have a full trial of the facts of these cases but they nonetheless proceeded to a hearing of these sample claims which were used here in this case as a vehicle to isolate, argue and resolve certain basic themes and issues which were common to the claims in the stayed proceedings.
Czech Republic, Hungary and Poland: Development of collective investment funds and securities markets
Authors: St Giles Mark
Published: January 2008

The Czech Republic, Hungary and Poland are regarded as being among the most advanced of the Central European countries in terms of financial sector development. This paper reviews the legislative and regulatory background to the development of investment funds in these countries and highlights the impact that governmental attitudes and mass privatisation programmes have had on fund market development.
Highly leveraged institutions: Possible regulatory responses
Authors: Richardson Jeremy
Published: January 2008

The experience of Long‐Term Capital Management (LTCM) demonstrated various ways in which highly leveraged institutions (HLIs) can threaten the stability of financial markets. This has sparked a policy debate about the possible responses by the authorities to reduce those threats. This paper attempts to take a step back from that policy debate. It summarises briefly what economic theory says are the fundamental reasons for regulatory intervention in any form of financial services business — essentially that there is a market failure to correct. It assesses the way in which HLIs may contribute to various of those types of market failure. And it runs through the proposals which have so far emerged for dealing with the weaknesses shown up by LTCM, showing how each corrects for the market failure in question, how big the benefits delivered by that correction are, and questioning how far the benefits justify the costs of implementing it.
European Monetary Union: Legal compliance for IT systems — Après ‘Le Weekend’
Authors: Hawley Alan
Published: January 2008

A number of articles have been written about information technology (IT) law aspects of the euro, and there is the implication that there is something special about euro implementation from the IT law point of view. The conclusion in this paper is that, even though the euro is not ‘just another currency’, a euro IT project is just like most other complex IT projects … only more so. A euro IT project for a multi‐national in Europe could be as big as any which that company has yet handled, because it may well involve the introduction of entirely new financial and accounting systems. For that reason, customers should follow proper contractual and project procedures. Suppliers should be careful about what they include in their warranties and specifications and should avoid over‐general or over‐generous warranties. In response, end‐users must allow as much time as possible, make the effort to scope their requirements, to understand what they need and to make sure that their contracts and schedules capture all those needs.
Website review
Authors: Kendrick Martyn
Published: January 2008

This review considers selected websites of interest to anyone concerned with electronic commerce and its regulation. This is an area of growing interest within the financial services industry, as the continuing developments in technology, such as the advent and increasing use of the Internet, multi‐media communications and scripted messages put the existing regulatory framework under immense pressure. In some cases, this has lead to an increasingly strained interpretation of the current legislation as regulators struggle to keep pace with the constant changes in technology.
Deposit insurance in theory and practice
Authors: Dale Richard
Published: January 2008

Having been hailed as the most important contribution to stabilising the US financial system after the 1929—33 crash, deposit insurance is now being blamed for financial destabilisation, particularly in emerging markets. This paper focuses on the relationship between deposit insurance and systemic stability in the banking system, drawing on recent experience in the USA, Europe and Japan. The conclusion is that if there is an embedded perception that in the last resort depositors will be protected beyond insurance limits then market‐orientated solution to the problems of ‘moral hazard’ and excessive risk taking cannot work.
Deposit insurance: Is it a plausible option for the Eastern Caribbean Currency Union?
Authors: Polius Tracy D. , Peters Amos C.
Published: January 2008

This paper examines the structure of the financial system in the Eastern Caribbean with a view to determining whether deposit insurance is a feasible alternative. It is argued that as the financial system deepens within the context of a liberalised environment the probability of systemic risk increases considerably. Against this backdrop, we find that deposit insurance may have a role to play in the Eastern Caribbean.
Insurance contract law and regulation and competition in the UK insurance industry: The missing link
Authors: Martine Bowyer Lisa
Published: January 2008

With all the events surrounding the setting up of the new Financial Services Authority, the issue of insurance contract law reform has yet again fallen by the wayside. These two matters are however, more closely linked than would first appear. The most recent proposals for the reform of insurance contract law were put forward by the National Consumer Council in 1997 but have fallen on deaf ears. Previously, the wealth and influence of the UK insurance industry lobby has been widely regarded as the primary reason for the failure of past governments to take action to implement recommended changes to the law. The power and motives of the governments themselves should not, however, be underestimated. Furthermore, it is important that the issue does not fall foul of a political dispute and that the law reform debate should take place according to the current and future objectives of society, whatever they may be.
Early warning systems: Helping to steer a safer course
Authors: Smith Allan
Published: January 2008

In this paper, the author examines the steps that Barclays Retail Financial Services has taken over the last few years to help identify potential risk to investors at an earlier stage. Barclays Bank plc is regulated by the Personal Investment Authority (PIA) and has a regulated sales force of around 1,000.
Senior management responsibilities under the new regulatory regime
Authors: Bagge James
Published: January 2008

The Financial Services Authority (FSA) issued in July 1999 draft Statements of Principle and Code of Practice for Approved Persons in preparation for the new regulatory regime to be introduced under the proposed new Financial Services and Markets Act. In December it issued draft rules and guidance relating to firms' systems and controls and responsibilities of senior managers. This paper summarises the proposed new regime and highlights some of the main issues that will arise for employees of regulated firms, and particularly for senior managers. It goes on to discuss senior managers' powers to delegate their functions and lessons learned from the courts on that issue.
The Financial Services and Markets Act cross‐border issues
Authors: Abrams Charles
Published: January 2008

After first being issued in draft in July 1998 and then taking a year to go through Parliament, the Financial Services and Markets Act 2000 (FISMA) finally became law on 14th June, 2000. The Treasury, the government department responsible for the UK financial services industry, has, however, just announced that the FISMA will not come fully into force until summer 2001, although some sections may perhaps come into force earlier.
Raising the threshold for audit exemption for small companies: Some implications for other users of audit services
Authors: Fearnley Stella , Hines Tony , McBride Karen , Brandt Richard
Published: January 2008

As part of a deregulation initiative for small businesses, the audit exemption limit was raised to £1m by the Audit Exemption (Amendment) Regulations 2000 in May 2000. This paper examines the possible consequences of this change on the supply of registered auditors' services and the subsequent impact this may have on a range of business entities, other than small private companies, which use registered auditors for various purposes.
How the FSMA will impact on retail financial services
Authors: Morris Simon
Published: January 2008

The Financial Services and Markets Act (FSMA) will have a significant impact on the UK financial services industry, but it is suggested that it will make relatively few changes in relation to retail financial services. The new regime will regulate some additional retail investments, and it is possible that the design of polarisation will be altered. The greatest impact, however, is likely to result from the FSA's emphasis on senior management responsibility, whereby firms' senior management will be held personally liable if the firm fails to discharge the key retail duties such as know your customer and giving suitable advice.
House of Lords rules on Bank of England immunity in respect of BCCI supervision Three Rivers District Council and others v Governor and Company of the Bank of England
Authors: LJ Steyn , LJ Hutton , LJ Millet , Gray Joanna
Published: January 2008

The factual background to this House of Lords decision lies in the 1991 collapse of the Bank of Credit and Commerce International (BCCI) Banking Group. The Appellants (who were the Appellants in the House of Lords) were depositors who had lost monies in the collapse of BCCI. BCCI itself was named as a Plaintiff since it was an assignee of the claims of Plaintiff depositors. The Plaintiffs (who were the Appellants in this appeal and are hereafter referred to as such) made a very large number of allegations against the Bank of England (the Bank) with regard to its exercise of its powers and discretions under the statutory scheme of Banking Supervision contained in the Banking Acts of 1979 and 1987. These allegations related to (inter alia) the Bank's decision to grant a full licence to BCCI in 1980, its failure subsequently to revoke that licence and various other acts and omissions in its supervisory role up to BCCI's collapse in 1991.
Financial regulation in Ireland: Should the regulator be the Central Bank?
Authors: Stewart Jim
Published: January 2008

A new financial regulator has been proposed for Ireland. There is little debate about the principle of a single financial regulator but considerable debate as to whether the Central Bank should retain this role or whether a new body should be established. This paper considers this issue in the context of recent controversies relating to tax evasion through use of the banking system which have highlighted some of the difficulties arising from the role of the Central Bank as both a conduct of business regulator and prudential/systemic regulator. The paper concludes that in the context of Ireland's membership of the euro the main function of the financial regulator is to focus on conduct of business issues and this is most likely to be achieved within a new institution.
Proposed EC Directive on the distance selling of financial services
Authors: Davis Alan
Published: January 2008

The European Commission has published a revised proposal for a European Parliament and Council directive to harmonise member states' rules on consumer protection in relation to the distance marketing of financial services. Financial services had been specifically excluded from the scope of the Distance Selling Directive which came into force in the UK on 31st October, 2000. Included in the proposal is the right of a consumer to receive a comprehensive set of information about the financial services supplier and the contract before the contract has been concluded, and the right to withdraw from the contract without penalty during a period of 14 days after entering into the contract. Questions have arisen as to whether the proposal is an example of wholly unnecessary intervention at European level and whether it is introducing unnecessary red tape for the financial services industry. One of the most important problems with the proposal relates, however, to a fundamental disagreement between member states as to whether the directive should be a maximum harmonisation measure or simply minimum harmonisation. With the current protracted state of negotiations, it remains unclear as to whether this proposal will ever achieve political agreement.
Electronic commerce and wholesale financial services
Authors: Baker Timothy
Published: January 2008

International wholesale financial markets have long been used to exploiting the cutting edge of technology to find more efficient ways of doing business. But now new electronic technologies are changing the structure and dynamics of markets themselves as seldom before, and the rate of change is increasing. To enable financial markets and the investors and entrepreneurs who use them to obtain maximum benefit, governments and regulators need to be careful not to constrain these developments by reference to traditional structures and standards which may no longer be appropriate. They should instead embrace the benefits which change brings, and radically re‐examine legal and regulatory frameworks in the light of the evolving landscape of opportunity and risk. This re‐analysis should take into account that the transparency and competitiveness of e‐commerce is bringing about a new alignment between investor protection, market stability and commercial advantage. Policy should be developed in partnership with users of the markets. The authorities will also need to take into account how new technologies are, as never before, globalising world markets — competitive advantage will go to wherever the most market‐friendly equilibrium is struck and maintained between commercial freedom and regulation.
Cross‐border financial services and alternative dispute resolution in the European Economic Area
Authors: Thomas David
Published: January 2008

The paper summarises the role of alternative dispute resolution, by ombudsmen and others, in the development of the European single financial market. It describes three particular initiatives sponsored by the European Commission — a financial services alternative dispute resolution (ADR) network, a general consumer ADR network and work on the relationship between ADR schemes and the Internet — and indicates where the Financial Ombudsman Service fits into these.
A regulatory framework for community development financial institutions
Authors: Mullineux Andy , Mayo Ed
Published: January 2008

This paper reviews the current regulatory framework for community development financial institutions (CDFIs), which aim to enable ‘socially excluded’ people and enterprises to access finance. Its focus is primarily on the UK, though account is taken of developments in other EU member countries and at the EU level. In the UK the most developed regulations relate to industrial and provident societies, which are essentially financial cooperatives lending to small enterprises and not for profit organisations, and credit unions, which tend to concentrate on personal savings and finance. CDFIs lie on the boundary of what is currently understood to be charitable status, but the Charity Commission announced a new charitable purpose, ‘community capacity building’, in December 2000 and committed to developing clear guidelines on the charitability of CDFIs by the end of 2001. Current regulatory arrangements are assessed and it is found that, apart from credit unions, which have been brought under the supervisory wing of the Financial Services Authority, CDFIs tend to operate in a context of ‘benign neglect’. While recognising that heavy‐handed regulation might stifle growth, it is argued that the downside of neglect could be uncertainty, which might also blight the development of the sector. An alternative, relatively liberal, regulatory framework is proposed, including self‐regulation for the smaller institutions via associations. It is concluded that the type of regulation should vary with the size, status (mutual vs non mutual), and source of finance (deposits vs risk capital).