Abstract
Why should financial firms be regulated? Are they different from non-financial firms? A financial service cannot generally be tested at the time of purchase, and much of the rationale for financial regulation stems from the problems of market failure that exist in the financial system, particularly in relation to investors. ‘Market failure’ here refers to a variety of events that can imperil the safety of investors’ funds — fraud, misfeasance, collapse of an institution (either through fraud or mismanagement, for example).
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Further reading
1. General Principles of Regulation
Pawley, M., Winstone, D., and Bentley, P., UK Financial Institutions and Markets (Macmillan, 1991).
Davies, E.P., ‘Theories of Intermediation, Financial Innovation and Regulation’, National Westminster Bank Quarterly Review, May 1993, pp. 41–53.
Gardener, E.P.M., UK Banking Supervision: Evolution, Practice and Issues (Allen & Unwin, 1986).
Gowland, D., The Regulation of Financial Markets in the 1990s’ (Edward Elgar, 1990).
Quinn, T., ‘The Economics of Financial Regulation — a Survey’, Central Bank of Ireland Quarterly Bulletin, Winter 1992, pp. 55–70.
2. Regulation of the Investment Industry
Abrams, C., Ferran, E. and Rider, B.A.K., Guide to the Financial Services Act, 1986, 2nd edn. (CCH Editions, 1989).
Blair, M., Financial Services: the New Core Rules (Blackstone Press. 1991).
Blair, M., et al. Banking and the Financial Services Act (Butterworths, 1993).
Cobham, D. (ed.) Markets and Dealers: the Economics of the London Financial Markets (Longman, 1992).
Franks, J. and Mayer, C. Risk Regulation and Investor Protection: the Case of Investment Management (Oxford University Press, 1989).
Hall, M.J.B., The City Revolution — Causes and Consequences (Macmillan, 1987).
Page, A.C. and Ferguson, R.B., Investor Protection (Weidenfeld & Nicolson, 1992).
White, J., Regulation of Securities and Futures Dealing (Sweet & Maxwell, 1992).
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© 1995 Stephen Curry and Howard Jarman
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Curry, S., Jarman, H. (1995). The Framework of Financial Regulation — Fundamentally Flawed?. In: Anderton, B. (eds) Current Issues in Financial Services. Palgrave, London. https://doi.org/10.1007/978-1-349-24462-1_2
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DOI: https://doi.org/10.1007/978-1-349-24462-1_2
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-56799-9
Online ISBN: 978-1-349-24462-1
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