bluuebunny/crossref_metadata_2025 huggingface dataset:
THE DYNAMICS OF INTERNATIONAL BANK REGULATION
Authors: SHAH ATUL K.
Published: January 2008

For many years, the banking industry has required close supervision owing to its central yet delicate role in economic life. In a short time, the business has moved from a local, country‐based jurisdiction to a global arena, on a massive scale. This development has forced regulation to adopt an international perspective, to keep in step with the commercial developments. This paper analyses this move from local to global regulation of banking, finding that the efforts seem to be reactive rather than proactive. In addition, the regulatory endeavours have become enmeshed in international economic competition, and sophisticated regulatory arbitrage is being conducted on a global playing field. Thus, regulatory objectives and standards are being increasingly compromised or subverted. Paradoxically, just as the banking business is becoming increasingly risky and scandalous, regulation is becoming weaker, posing serious challenges to the future of the world economy and society.
Banking regulation and the tort of misfeasance in public office: The difficulties in suing regulators Three Rivers District Council and others (1) Bank of Credit and Commerce International SA (in liquidation) (2) v Bank of England
Authors: Gray Joanna
Published: January 2008

The Plaintiffs were depositors who had lost monies in the collapse of Bank of Credit and Commerce International (BCCI). BCCI itself was named as a Plaintiff since it was an assignee of the claims of Plaintiff depositors. The Plaintiffs 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.
Ignorance of the law is no excuse for company directors Attorney General's Reference No. 1 of 1995
Authors: Gray Joanna
Published: January 2008

Section 3(1) of the Banking Act 1987 stipulates that:
Assignment of individual investors' claims to the Investors Compensation Scheme declared invalid (1) Investors Compensation Scheme Ltd v West Bromwich Building Society; (2) Same v Hopkin & Sons; (3) Alford & Ors v West Bromwich Building Society; (4) Armitage v West Bromwich Building Society
Authors: Gray Joanna
Published: January 2008

This case concerned the validity of assignments to the Investors Compensation Scheme (ICS) of the claims of various individual investors which arose out of the widespread mis‐selling of home income plans between 1989 and 1991. The factual background to the case is given in a statement of facts agreed between all parties and appended to the judgment. A FIMBRA regulated firm of independent financial advisers, Fisher Prew Smith Ltd advised the claimants (including Messrs Alford and Armitage in this action), to take out home income plans involving equity release mortgages with the West Bromwich Building Society (WBBS) which were arranged by Hopkin & Sons (the Solicitor Defendants). The firm of independent financial advisers concerned failed and, as they were authorised persons (FIMBRA members), claims against them for negligence, breach of contract, fiduciary and statutory duty were to an extent covered by the s.54A Financial Services Act (FSA) statutory compensation scheme. The claimants were duly compensated by the ICS within a range of 50—75 per cent of their claims at law but despite this many of the individuals affected (including the Plaintiffs in the third and fourth actions) still have outstanding liabilities to the WBBS. When the individual claimants received offers of compensation from the ICS they signed a standard claim form which contained a declaration that the claimants had received no compensation of any kind in relation to the claim and confirmed that they did not expect to receive any such in the future, a declaration that ICS would take over the claimants' rights and claims against third parties on the payment of any compensation. The claim form further provided ‘ICS agrees that the following claim shall not be treated as a third party claim for the purpose of this agreement and the benefits of such claim shall inure to you absolutely: Any claim (whether sounding in recission for undue influence or otherwise) that you have or may have against [the WBBS] in which you claim an abatement of sums which you would otherwise have to repay to that society in connection with the transaction and dealings giving rise to the claim (including interest on any such sums’. The claim form further provided that the claimants agreed, in the event of their receiving any money or assets in respect of the claim from the scheme participant firm or from any FSA trustee, to transfer such money or assets to the ICS. It provided for an assignment to ICS of claimants' third party claims in the following words ‘We hereby assign to ICS each and every third party claim and the benefit thereof’.
Defining dishonesty: A culture clash of law and business Royal Brunei Airlines SDN BHD v Tan
Authors: Gray Joanna
Published: January 2008

Royal Brunei Airlines (the airline) had, in 1986, appointed Borneo Leisure Travel (BLT) as its agent for passenger and cargo transport sales in Sabah and Sarawak. Mr Tan was the founder of BLT, its managing director and its principal shareholder (the only other director and shareholder being his wife) and was, in effect, in sole control of BLT.
Open‐ended investment companies
Authors: Diggle Paula
Published: January 2008

Parliament has recently approved Treasury legislation defining the structure of the UK‐based open‐ended investment company (OEIC). This paper reports on the changes made in response to messages received in consultation, especially in the area of corporate governance. It also considers proposals for a deregulation order to give OEICs further investment powers. This was in the consultation phase at the time of going to press.
Training and competence — the compliance officer's perspective
Authors: Miller Diana
Published: January 2008

The purpose of this paper is to examine the importance of the PIA's training and competence requirements as a means by which a company's PIA Compliance Officer can ensure advisors are being properly monitored and are given advice in a competent and compliant way. It examines the importance of the supervisor's role, the need to move away from prescriptive requirements and the use which can be made of management information gained from the T&C scheme.
Money laundering regulation: A bridge too far?
Authors: Thornhill Sue
Published: January 2008

The 1997 revised version of the UK Money Laundering Guidance Notes for the financial sector are about to be published. They represent the results of a year's consultation and clearly demonstrate the financial sector's commitment not to be tainted by criminal money. However, the fight against laundering the proceeds of crime has long since moved away from the concept of suitcases full of cash across bank counters, and the self‐regulatory process must now encompass every part of the financial sector, going beyond the requirements of the Regulations themselves. Financial sector businesses have committed significant resources to the fight against crime, but this has not been matched by investment in the investigation, prosecution and confiscation process. As the financial sector requirements become more onerous and involved, questions are being asked whether more than enough is being required of financial sector businesses.
The deregulation of foreign exchange control in Japan
Authors: Shinoda Hiroaki
Published: January 2008

The Japanese ‘Big Bang’ is expected to cover almost all areas of the country's financial systems. Within the many, differing revolutionary changes, the ‘front runner’ is the reform of the Foreign Exchange Control Law. The objectives of the reform are to make the Tokyo market a global financial centre and to provide free and swift cross‐border transactions for Japanese investors. The principal changes are: (a) liberalisation of cross‐border capital transactions, and (b) the abolition of the authorised foreign exchange bank system and that of the designated securities firms.
R v PIA ombudsman & PIA ex parte Burns‐Anderson Independent Network plc
Authors: LJ McCowan , LJ Millett , LJ Auld , Gray Joanna
Published: January 2008

The Applicant in this case, The Burns Anderson Independent Network plc, was authorised to conduct investment business under the Financial Services Act 1986, by virtue of its membership of the Personal Investment Authority (PIA). An allegation had been made to the PIA ombudsman that the Applicant was involved in the operation of a holiday time share business known as the Villa Investment Plan. An action group of dissatisfied time share purchasers from the Villa Investment Plan was formed and lodged a complaint with the PIA ombudsman claiming compensation for losses amounting to £8m.
ICIC (Overseas) Ltd v Adham & Others
Authors: Harman J , Gray Joanna
Published: January 2008

The background to this action involved allegations of fraud by the Plaintiff, (some of which had been proved) against the Defendants which had already given rise to protracted litigation.
Markups in equity securities deemed to be less than active and competitive
Authors: Sergio John
Published: January 2008

Over the last ten or 15 years, there has been a fundamental change in focus in the regulation of the broker/dealer community in the USA. While examination of a firm's net capital compliance is still undertaken by the various self regulatory organisations (SROs), the scrutiny over sales practice compliance has increased greatly. Perhaps the single greatest area of importance in sales practice compliance is that of remuneration charged by an executing broker/dealer (B/D). While computation of commissions, markups and markdowns in actively traded equity securities is relatively straightforward, the methodology used for securities not deemed to be active and competitive is more detailed. This paper attempts to assist in identification of such securities, explain the calculations involved in the computation of proper commissions, markups, and markdowns of such securities, and lastly, provide guidance in maximising profit margins in the trading of securities which may tend not to be so actively traded, while at all times remaining in compliance with applicable regulations. The scope of this paper is limited to equity securities (shares, units, rights and warrants of stock trading in the US securities markets) the most important of which are the Nasdaq SmallCap Market and those non‐Nasdaq markets where less active securities often trade.
Managing the firm‐regulator relationship
Authors: McMurray Gordon
Published: January 2008

This paper sets out to examine, on an elemental basis, the key mechanisms and techniques which could be used to build up a management relationship with a firm's regulator. It is aimed at being both a reminder for the more seasoned hands and a guide for new starts. As with most subjects of this nature its purpose is to increase awareness of the importance of compliance and its various techniques for success.
The prevention and detection of corporate fraud: An assessment of the present framework
Authors: McInnes W.M. , Stevenson J.E.
Published: January 2008

This paper examines the current framework in the UK for the prevention and detection of corporate fraud, in the light of recent figures which demonstrate that losses from reported fraud far exceed losses from other kinds of theft. The responsibilities of external auditors and corporate management for preventing and detecting fraud are explored, as is law enforcement in regard to fraud. The paper concludes that the overall framework is weak and that given the escalation of fraud levels, the Government ought to conduct a full review of the roles of auditor and management and the state of law enforcement in this area.
The Securities and Investments Board v Scandex Capital Management A/S & Jeremy Bartholomew‐White
Authors: Carnwath J , Gray Joanna
Published: January 2008

The first Defendant, Scandex Capital Management A/S, (Scandex) was a Danish company, now in liquidation, of which the second Defendant, Mr Bartholomew‐White was managing director and in which he held one third of the share capital. Scandex was incorporated in September 1995 and submitted an application for authorisation to do investment business to Finans (the Danish investment business regulatory authority) in late December 1995. There was some confusion as to the exact date that Scandex commenced doing investment business but it was clear that by April 1996 it was: sending letters to individual investors in the UK, offering investment services involving foreign exchange trading for and on behalf of UK investors; had sent mailshots directed at investors into the UK; had made unsolicited calls offering forex trading services; and, had also made misleading statements about, inter alia, the level of commission Scandex was charging its clients. Significant losses were incurred by UK investors as a result of their dealings with Scandex. Scandex had been operating in Denmark on the basis of interim authorisation from Finans under transitional provisions of Danish law implementing the Investment Services Directive (93/22/EEC, hereinafter referred to as ISD), pending Finans' determination of its application for full authorisation to do investment business. When, in late April 1996, SIB enquired on what basis Scandex was cold‐calling and advertising speculative forex dealing services in the UK, Scandex replied that it was doing so under the passporting provisions of the ISD since it was authorised in Denmark and therefore entitled to offer cross‐border investment services. In the event, Scandex' Danish authorisation under the transitional provisions of Danish law came to an end in September 1996 when Finans considered and rejected its application for authorisation. The Danish regulator was concerned about the contents of an audit report it had asked for on Scandex, which prompted the resignation of Scandex' two Danish directors, and also the fact that there was no evidence to show that Scandex had traded in Denmark as opposed to using its office as a launch pad for approaching clients based outside Denmark.
Regulating financial reporting on the Internet
Authors: Hussey Roger , Gulliford James
Published: January 2008

This paper questions the adequacy of the current financial reporting regulatory system to deal with corporate financial information disclosed on the Internet. The results of a research study made on the FTSE 100 companies Internet sites are used to discuss company practices and the issues arising. The paper outlines the key problems and suggests alternative approaches to regulating this new frontier for financial reporting.
Developments in voluntary self‐regulation
Authors: Jamison Nicola
Published: January 2008

This paper examines the swathe of voluntary self‐regulation which affects the day‐to‐day operation of banks' and building societies' retail businesses, especially in the light of the new Council of Mortgage Lenders (CML) Mortgage Code and the third edition of The Banking Code, and examines whether such self‐regulation can be an effective alternative to legislation.
The marketing of investments
Authors: Walmsley Nicholas
Published: January 2008

The complexity of regulations governing ‘investment advertisements’ is described and their contribution to investor protection discussed.
Safeguarding investment in Danish mortgage bonds
Authors: Ladekarl Jeppe
Published: January 2008

This paper considers some safeguard measures protecting the investment in mortgage bonds against credit risk. The outset of the discussion is the 200‐year old Danish system of mortgage credit where investor protection primarily has been achieved by ensuring the quality of the mortgage credit institutions' balance sheets. The safeguard measures used focus on the relative and absolute size of the capital base of the mortgage credit institutions and the minimisation of interest rate and credit risk borne by the institutions. Important features in this respect are the so‐called ‘balance principle’, eliminating interest rate risk from lending operations and maximum loan‐to‐value rules. These measures combined with a monopoly on the name ‘mortgage bond’ constitute the backbone of the system.
The insurance industry and the Financial Services Authority
Authors: Boléat Mark
Published: January 2008

Insurance has been seen as a distinct function and discipline. Over the last few years, market changes have lessened the distinctiveness of insurance. This is being reflected in the government's proposals for a new single regulator for financial institutions, the Financial Services Authority. The new regulator will further reduce the distinctiveness of insurance by seeking to apply common systems to all financial institutions. This has some advantages for some insurance companies, in particular the large diversified companies, but it also has disadvantages, particularly in terms of costs and transitional problems.
The new Financial Services Authority: Plans for implementation
Authors: Hilton Andrew
Published: January 2008

The UK is undergoing a revolution in the structure of financial regulation that is being closely watched — but not necessarily emulated — around the world. The motivation for change was clear and, by and large, implementation is taking place in an admirably transparent way. But there must be real concerns about the relationship between the new Financial Services Authority and the Bank of England, the ‘consumerist’ orientation of the new legislation, the funding of the new regulatory structure and the regulation of complex groups.
Auditor independence and the expectations gap: Some evidence of changing user perceptions
Authors: Beattie Vivien , Brandt Richard , Fearnley Stella
Published: January 2008

The audit function is an essential part of the regulatory structure which supports the integrity of our capital markets. There is a recognised expectations gap which surrounds the audit function, as many users of audited financial statements have different expectations of the audit function from what it delivers. Perceptions of auditor independence are a fundamental part of this expectations gap. In the light of recent significant changes to the regulatory framework, this paper reports a survey of leading financial journalists, to ascertain their current views on auditor independence. Findings show a belief that some of the changes have reduced the expectations gap although problems still exist in the area of non‐audit services. However, the most significant threat to independence is seen to be the economic and personal pressure on the partner as an individual, an area difficult to regulate. The challenge for audit firms is to demonstrate how well they control for this within their management structures.
Achieving a coordinated approach to compliance in a global business
Authors: King Matthew
Published: January 2008

Organising a compliance function in a widely‐diverse group such as HSBC appears a formidable challenge. This paper describes some of the more basic steps taken within HSBC to achieve a coordinated approach, both in terms of the structure of the compliance function and the framework within which compliance officers are expected to operate.
Waking up to the nightmare: Winners and losers after EMU
Authors: Langton John L.
Published: January 2008

In this paper, the author examines how fund management is destined to be the largest source of growth in investment assets once the European single currency is introduced. The removal of currency costs and currency risks in the conduct of cross‐border business will improve investment flows within the euro zone and generate an increase in investment assets from pension funds. The author warns that the introduction of the euro is likely to toughen cross‐border competition between market intermediaries and cause a reduction in costs, increasing the attractiveness of trading and investing in Europe. The removal of currency risk and convergence in yields will lead fund managers to seek alternative ways to give their fund performance an advantage over their competition.
BCCI (Overseas) Ltd, BCCI Holdings (Luxembourg) SA and BCCI SA (all three appellants in liquidation) v Price Waterhouse and Ernst & Whinney
Authors: Gray Joanna
Published: January 2008

Sir Brian Neill briefly set out the factual background to this litigation at the beginning of his judgment:
Principles of effective regulation and supervision of banks
Authors: Llewellyn David T
Published: January 2008

The FSA will become the most powerful financial regulator in the world as a single agency responsible for the regulation and supervision of the full range of financial services. While questions of institutional structure raise important issues, they are of second‐order importance compared with the general approach, style and intensity of regulation and supervision that regulators apply. The objective of the paper is to outline some general principles to guide the regulation and supervision of banks so as to maximise the probability of objectives being achieved, while at the same time minimising the potential costs.
The Financial Services and Markets Bill and the role of Lloyd's
Authors: Young CBE John
Published: January 2008

The problems of the Lloyd's insurance market over the past few years have been extensively reported. The market survived nevertheless and has since undergone extensive restructuring to address the problems of the past. This has included a fundamental review of its regulatory framework. The new Financial Services and Markets Bill introduces oversight of Lloyd's by the Financial Services Authority (FSA), thus implementing the key recommendation of Lloyd's own review of its regulatory arrangements, published last year.
The Financial Services and Markets Bill: A legal perspective
Authors: Middleburgh Jonathan
Published: January 2008

The Financial Services and Markets Bill is an impressive attempt to revisit the field of financial regulation and to replace the existing regulatory structure with a single regulator with coherent powers. There is a danger, from the legal perspective, that the Dill is too widely drawn, vesting the new single regulator with too wide a discretion to formulate rules and policies which themselves will not be susceptible to legislative scrutiny.
Risk management and the retail sector: A banking perspective
Authors: Hepton Tansy
Published: January 2008

Within a retail bank, the key risks relate to customers and the way in which the bank deals with them, rather than to financial markets. This paper identifies those key risks, comments on some implications for organisational structure and suggests ways in which these risks can be managed.
Risk‐based compliance monitoring
Authors: Batchelor Dawn
Published: January 2008

This paper sets out the fundamental generic concepts behind applying a risk‐based approach to monitoring compliance with PIA's regulations. It also looks at some of the practical considerations for implementing such a system. Every insurance company understands the concept of identifying and measuring risk for the purpose of underwriting — but few apply this skill to risks the company faces in terms of compliance with PIA regulations. Each of the regulators is beginning to use risk assessments to focus their monitoring activity. IMRO have recently issued a ‘scorecard’ which includes ten questions, positive answers to which would indicate an effective compliance regime. The other regulators are at varying stages of designing and implementing such systems. The ultimate objective of such tools is a reduction in the level of monitoring by the regulators for those firms who are able to demonstrate a sound compliance culture. The benefits of risk‐based compliance monitoring can be huge. In addition to potentially substantial cost savings in the longer term, this approach should lead to better control of the business and increased flexibility in response to changes in the marketplace and the customer base.
Audit regulation: A partial solution expanded
Authors: Beattie Vivien , Brandt Richard , Fearnley Stella
Published: January 2008

The Department of Trade and Industry (DTI) issued a consultation document in November 1998, which set out a framework for the independent regulation of the accountancy profession. This framework broadly adopts the proposals put forward by the profession itself. In this paper, the focus is on audit regulation. The current regime is outlined and its structural weaknesses and procedural problems identified. The proposed reforms are described and critically evaluated. It is argued that the proposed reforms offer only a partial solution to regulatory concerns, since no changes are proposed to the existing regime either for registration, or for monitoring and discipline of the majority of audit cases. An expanded framework that rationalises current practices and provides a more comprehensive solution is suggested. A critical feature of the proposal is that a distinction is made between audits of small entities and audits of major listed companies, only the latter of which are of public interest. Each would have distinct licensing and monitoring procedures.
In the matter of Market Wizard Systems (UK) Limited and in the matter of the Insolvency Act 1986
Authors: Gray Joanna
Published: January 2008

Between September 1997 and March 1998 Market Wizard Systems (UK) Ltd (the Company) advertised and sold a computer software package called the Market Wizard Equity Options Trading System (the System). The petition in this action described the System thus:
Papers Brazilian banking and stabilisation
Authors: Luis Troster Roberto
Published: January 2008

This paper focuses on the influence of stabilisation and policy choices on Brazilian banking. It is generally understood that stabilisation, ceteris paribus, allows banking to develop, but, Brazil faced its worst banking crisis just after stabilisation. The main conclusions are that a considerable proportion of the obstacles faced were due to an inappropriate banking policy and that even though many of the problems have been solved, some remain.
Emerging markets of the Middle East: A critique of selected issues in Arab securities regulation
Authors: Minwer Al‐Rimawi Lu'ayy
Published: January 2008

This paper examines comparative aspects of Arab securities regulation. It provides a general introduction, overviews the aims of securities regulation and the UK regulatory framework, and outlines the obstacles facing equity financing under Shari'a and hindrances to effective Arab securities regulation. It accounts for the major macroeconomic reasons which have enhanced interest in Arab securities markets, examines lack of Arab rules on fraud, insider dealing and possible contractual remedies. It concludes with a case study shedding light on the term ‘securities’ as understood by Article 3 of the 1997 Jordanian Securities Act.
Paths to recovery in Thailand and Indonesia
Authors: Mullineux Andy , Agung Juda , Pinijkulviwat Adisorn
Published: January 2008

This paper briefly reviews the build up to and onset of the 1987 financial crises in S. E. Asia, focusing on the experiences of Thailand and Indonesia. After emphasising the importance of banking sector restructuring and regulatory reform, progress with economic stabilisation and financial and enterprise sector restructuring in the three countries is assessed. Future prospects are then considered.
The emerging market crisis and its aftermath in Latin America
Authors: Cañonero Gustavo , Rojas Suárez Liliana
Published: January 2008

Latin America's contagion from the Asian shock was limited because: a) the region had successfully implemented structural reforms in recent years; b) policymakers acted swiftly to make appropriate changes in fiscal and monetary policy; and c) abundant reserves facilitated a relatively smooth adjustment. The Russian shock proved much harder to weather, as it adversely affected risk perception about emerging markets as an asset class resulting in an abrupt halt of capital inflows and a deep recession. Recent developments in international capital markets suggest a more benign environment for growth. This, however, provides no guarantee of a sustainable recovery for all economies in the region.
The Asian crisis and the process of financial contagion
Authors: Allen Franklin , Gale Douglas
Published: January 2008

Economists have believed for a long time that financial systems are fragile in the sense that small shocks can cause serious disruption. Research has focused on phenomena, such as bank runs, which affect the stability of individual institutions. Only recently has there been interest in the phenomenon of contagion, in which financial distress in one institution or one sector of the financial system spreads to other institutions or sectors. The crises in South‐East Asia in 1997 and Russia in 1998 have provoked speculation that financial crises have spread from one country to another. This paper reviews a number of possible hypotheses about the process of financial contagion and relates them to recent events in emerging markets.
Liability of financial advisers for pensions mis‐selling
Authors: Ryley Philip , Virgo John
Published: January 2008

This paper is based on a talk given by Philip Ryley and John Virgo to the Association of Pension Lawyers at their annual conference in Bournemouth in November 1998. In it the authors provide an outline of some of the key legal issues that have arisen out of the pensions mis‐selling litigation.
Going Dutch: Catch‐all insider trading
Authors: Groenhuijsen Marc , Kristen François
Published: January 2008

In the Netherlands new legislation has come into force in order to deal with insider trading. The legislator followed a new strategy. This time, instead of a provision with well‐defined criteria, a sort of catch‐all provision was created. The aim was to avoid difficulties in proving the offence. As a consequence, a new problem has arisen — usual and accepted behaviour on the stock markets, such as exercising, a green shoe option, is now within the ambit of the penalisation. The Dutch legislator has thus created some exceptions. These developments are analysed in the paper.
Trust status for ‘surpluses’ account set up during wind down of SFA member firm
Authors: Gray Joanna
Published: January 2008

The applicants in this case were the liquidators of Branston & Gothard Ltd. Branston & Gothard Ltd (Branston & Gothard) were stockbrokers authorised to conduct investment business under the Financial Services Act 1986 by virtue of their membership of the Securities and Futures Authority (SFA). Their main business consisted of portfolio investment management business on behalf of clients (this business being divided into discretionary, advisory and execution only business) and provision of single company and general PEPs. During the 1990s Branston & Gothard had contracted out its back office administrative functions to Carr Shepphards Ltd. who, as unsecured trade creditors of Branston & Gothard, were second respondents in this application. Unfortunately, Branston & Gothard began making losses in 1997 which led to SFA having concerns as to the firm's capital adequacy, reconciliation work as to verification of securities held and resolution of inquiries. In light of these concerns SFA served an intervention order on 2nd April, 1998 pursuant to rr 7–12 to 7–19 SFA Rules which ordered Branston & Gothard to:
Re‐Regulating banks: The unfinished agenda
Authors: Mullineux Andy
Published: January 2008

It is argued that bank regulation is required to protect depositors who are less risk averse than bank shareholders. The ongoing financial revolution has generally benefited consumers of financial services by increasing competition and broadening the range of products. More and more people have, however, been excluded. The paper considers whether further regulation is required to ensure that the financially excluded gain access to payments services and overdrafts and loans. It is concluded that there is plenty of scope for involving banks, credit unions and other new mutuals in the elimination of financial exclusion.
Problems and politics of regulatory fragmentation: The case of the Financial Reporting Review Panel and the Institute of Chartered Accountants in England and Wales
Authors: Fearnley Stella , Hines Tony , McBride Karen , Brandt Richard
Published: January 2008

The UK regime for financial reporting and auditing was radically altered in 1990 and 1991 by two separate developments. When removing sole responsibility for setting accounting standards from the accounting profession, the opportunity was taken to establish a monitoring body, the Financial Reporting Review Panel (FRRP), to oversee compliance with company law and accounting standards, and with powers to apply to the courts for rectification. In addition, a new regulatory system for auditors was set up. This paper considers the problems arising between the regulatory responsibilities of the Institute of Chartered Accountants in England and Wales (ICAEW) and FRRP. In 50 cases (up to September 1999) FRRP found defects in accounts, 49 of which were audited by firms regulated by ICAEW, but no disciplinary action was taken by ICAEW until 1999. The way in which the new audit regulations were grafted onto the existing ICAEW disciplinary regime is considered, and the anomalies arising from that explored. The cases resulting in ICAEW's disciplinary action are compared with the other cases together with some evidence from finance directors and audit partners with experience of dealing both with FRRP and an ICAEW disciplinary investigation. The relevant theories relating to professional bodies and regulation are also reviewed. Finally, the authors review the problems identified in this study and make suggestions as to how they may be addressed.
Hong Kong's new compulsory stock borrowing programme
Authors: Bai Lynn
Published: January 2008

The paper discusses the main features of Hongkong Clearing's new ‘compulsory’ stock borrowing programme, the reasons behind its implementation, the risk exposure of lenders and the borrower (ie Hongkong Clearing), and problems associated with the lack of collateral for loaned stocks and possible solutions.
Money laundering and the Internet: A challenge for regulation
Authors: Jones Rob , Keasey Kevin
Published: January 2008

This paper examines the potential effects of the Internet and e‐commerce on money laundering activity. Money laundering is a continuing problem both for regulators who are seeking to maintain trust and confidence in the financial system and the investigating authorities who are charged with enforcing the law. There have been a number of developments in recent years both in the detailed regulations and the laws designed to prevent and deter money laundering. There has been an ongoing battle of ideas and innovation between money launderers and the regulators and investigating authorities. To date the authorities have been able to keep up with developments by developing and refining the regulations. With the emergence of the Internet and e‐commerce, however, new opportunities and techniques will be opened up to money launderers. This will present a whole new set of challenges and problems to the authorities. This paper considers these challenges and problems.
Future legislation affecting financial services
Authors: Inger Lucy
Published: January 2008

The financial services industries is facing a number of important legal developments. The most publicised of these is the coming into force on 1st March, 2000 of the new Data Protection Act 1998. This is going to have a profound impact on the way in which businesses process personal data. It will, for the first time ever, apply to personal data stored in certain manual files and it will also regulate trans‐border data flows and restrict the processing of a special category of sensitive personal data. Information is the lifeblood of any business. There is no doubt that this Act is going to regulate the flow of that information and all its uses. Other developments in the pipeline include the proposed European Union Directive on the distance selling of financial services to consumers and the various legislative provisions which are being put in place to deal with the huge surge in on‐line transactions.
Examining the new market abuse regime
Authors: Wisbey Gay
Published: January 2008

The Financial Services and Markets Act will introduce a new framework for dealing with cases of market abuse. In broad terms the framework will cover market manipulation, the misuse of information not generally available to the market and the dissemination of misleading information. The Government made a number of changes to the proposed regime during the Bill's parliamentary stages with the outcome that what is now Part VIII of the act looks quite different from the original Part VII published in the July 1998 Bill. That, however, begs the question of how different the current version of Part VIII is to its predecessor in substance. This paper addresses the following broad areas in order to summarise where we now stand: — the original intentions behind the introduction of a new regime for dealing with cases of market abuse, complementary to the criminal regime — the concerns which the original approach raised in the minds of market practitioners and their advisers — an assessment of the changes that have been made to Part VIII (formerly Part VII) of the Bill as originally published, and — some concluding thoughts.
Disciplinary procedure: ‘The new regime’
Authors: Ryley Philip , Virgo John
Published: January 2008

This paper is confined to an overview on the disciplinary and appeal procedures contained in the Financial Services and Markets Act 2000. The paper will not deal with market abuse, civil remedies, intervention or criminal prosecutions. It will, however, deal with discipline procedure and the appeal process. It is important to remember, when reading this paper, that the financial services industry still awaits the publication of the draft Enforcement, draft Supervision and draft Authorisation Manuals. The current expected publication date is August 2000. In addition, it is necesssary to distinguish between disciplinary measures affecting individuals and measures affecting businesses. This paper adopts the definitions in the Act and so the use of ‘authorised person’ refers to a business entity, and the use of ‘approved person’ refers to an individual. [Editor's note: A few days after this paper was written the draft Enforcement manual was published. The manual can be viewed at www.fsa.gov.uk.]
Investigation powers: ‘The new regime’
Authors: Virgo John , Ryley Philip
Published: January 2008

Section 1(1) of the Financial Services and Markets Act (the Act) provides: ‘the body corporate known as the Financial Services Authority (“the Authority” [the FSA]) is to have the functions conferred on it by or under this Act’.
The use of league tables in financial services
Authors: Jones Rob , Keasey Kevin
Published: January 2008

This paper considers the principles underpinning the proposals for a comparative information scheme for personal financial services products. In October 1999 the Financial Services Authority (FSA) issued Consultation Paper 28: ‘Comparative Information for Financial Services’ which outlines the preliminary work carried out by the FSA and its consultants in this area. The scheme has some similarities to the league tables found in the education sector and it is likely that, if implemented, the proposed scheme will become known as the ‘Finan‐cial Services League Tables’. The consultation paper identifies specific outcomes which the FSA states are its policy objectives in this area. These objectives are in the areas of consumer knowledge and competition. This paper considers the rationale for the proposed scheme and looks at its potential benefits and problems. To do this it draws on both the FSA's Consultation Paper and the established body of research int the effectiveness of performance measurement and league tables. The paper considers the issue that in order to be worthwhile a performance measurement system must generate a net benefit. Specifically, the costs of setting up and maintaining the system plus the imperfections in the information generated by the system must be outweighed by the value of the information to its users. The costs of setting up and administering a system for financial services league tables can be quantified. The potential both for imperfections in the information generated and in the way in which that information is used are not so easily quantified, however, and require careful analysis. This paper concentrates on providing analysis of these potential imperfections. It concludes by discussing whether these potential problem areas are of sufficient significance to undermine the purpose and value of the proposed league table scheme.
How to encourage whistleblowing
Authors: Crook David
Published: January 2008

This paper, derived from a conference presentation, discusses corporate fraud and the role that ‘whistleblowing’ can play in combating malpractice. It examines why employees have been reluctant to ‘blow the whistle’ and goes on to suggest how employers can provide alternative ways for staff to raise their concerns. It concludes by looking at the impact of the ‘whistle‐blower protection’ offered by the Public Interest Disclosure Act 1999.
Education, advice, and the Financial Services Authority's statutory objective
Authors: Ring Patrick
Published: January 2008

For the first time, a UK financial services regulator will have a statutory duty to enhance financial education in the UK. The Financial Services Authority is now beginning to set out in some detail how it will go about fulfilling that duty, and the issues it faces. As well as increasing consumer awareness of the financial industry and improving consumers' ability to identify their financial needs, the FSA aims to enable consumers to decide upon the purchase of financial products through the provision of the FSA's own information and advice — what may be referred to as a form of ‘solution education’. This will place the FSA in a relationship with the general public where the rights, responsibilities and expectations of, and upon, consumers must be made clear and accepted. The inability of the current regulatory regime to establish unequivocally what constitutes adequate or appropriate advice does not augur well.
Pension reform, capital markets and corporate governance in Malaysia
Authors: Asher Mukul G.
Published: January 2008

The main retirement benefit scheme for private sector employees in Malaysia is a 50‐year‐old mandatory savings scheme administered by the Employees Provident Fund (EPF). It had accumulated assets equal to 55 per cent of GDP in 1999; making it one of the largest such schemes in the world. Over the past 40 years, it has earned a real rate of return of 3.37 per cent per annum on its portfolio. The key question is whether the EPF can sustain even this moderate rate of return in the aftermath of the 1997 economic crisis and in the era of globalisation. The paper argues that this will require reforms in financial and capital markets, better corporate governance and modest international diversification of the EPF's portfolio. Development of appropriate annuity products will also be required to protect members against the longevity risk.
The Financial Services Authority's new approach to regulation
Authors: Capps David , Linsley Sam
Published: January 2008

The new single regulator for financial services, which acquires its main powers under the new Financial Services and Markets Act 2000, brings together nine regulatory and supervisory bodies operating under a broad range of existing statutory or contractual arrangements across all financial services sectors. In January 2000, the Financial Services Authority (FSA) published a policy report on its new approach to regulation, aimed at focusing its regulatory effort on the risks to its statutory objectives. The proposals rely to a significant extent upon a new risk assessment process, outlined in the paper, which is intended to identify those areas of greatest risk. The paper considers how the new approach is likely to be implemented and looks at the issues involved in applying a risk‐based approach consistently across the industry sectors. The paper includes a review of the supervisory arrangements adopted by four of the predecessor regulators.
Minimum capital requirements and the design of the new Basel Accord: A constructive critique
Authors: Milne Alistair
Published: January 2008

The Basel committee proposes making regulatory capital requirements more risk sensitive. Cost‐benefit assessment suggests that this yields greater efficiency in the use of regulatory capital, but has substantial enforcement and compliance costs and may well increase the severity of banking crises. Better if the new Accord sets risk‐insensitive regulatory minimum capital standards and encourages banks to set risk‐sensitive desired capital targets with generous reductions in required capital for healthy banks with effective systems of risk management. Ten specific suggestions for improvement of the new Accord are made.
Too much regulation?
Authors: Wood Geoffrey E.
Published: January 2008

This paper considers what purposes regulation and supervision of financial institutions are designed to serve. Historical experience with regulation and supervision is considered, and it is argued on the basis of that examination that a fairly ‘light touch’ in regulation is likely to achieve the objectives that governments and citizens require regulation to achieve. Accordingly, the paper concludes that when regulation is evaluated and compared against unregulated systems, one should be careful to compare fallible regulation with fallible markets, rather than implicitly assuming regulation is perfect. Otherwise over‐regulation will result.
SALARY MATTERS
Authors: Turock Betty J.
Published: January 2008

A “gloomy career” is how the July 1986 issue of Working Woman describes librarianship, citing it as one of the 10 worst careers for women in 1986. Over 100 years ago, women were encouraged to enter the library profession as a source of plentiful, educated, cheap labor. Half a century ago, Library Journal first chronicled the issue of competitive salaries. Today, we are still facing the dilemma of how to recruit and retain library professionals given the depressed salaries paid to MLS graduates.
REVENUE PLANNING: A Vital Tool for Public Libraries
Authors: Wooldridge Blue
Published: January 2008

“The politics and processes of local government face substantial change because of Federal action on taxes and the budget deficit as well as court and Congressional challenges to local authority, according to officials at every level of government around the country.
CASH CONTROL
Authors: Yavarkovsky Jerome
Published: January 2008

Librarians rarely see themselves as business managers. We are offered few options for fiscal, accounting, or budgetary courses in our formal graduate training. More important, few of us consider that at some point in our careers we will have to manage a business — sometimes as custodian of a major financial enterprise, sometimes as manager of a small‐ to medium‐size department or library. But, from the reading room open only part‐time to the major research library, funds must be received, accounted for, and dispersed. There are fiduciary responsibilities in every library. Not only are there the obvious responsibilities for payroll; the control of acquisitions; the purchasing of operating supplies, equipment, and furnishings; there are also responsibilities for the handling of cash in many libraries. Fines, photocopy services, database services, interlibrary loan, equipment and facilities rentals, and book sales are common sources of cash transactions. At a minimum, there is usually a change fund to provide coins for public telephones and photocopy or other vending machines. The procedures for receiving, handling, controlling, accounting for, and reporting on cash receipts are as numerous and variable as the libraries themselves.