The Financial work Act 1986 came as a offspring of Margaret Thatcher¡¦s reforming of the infrastructure in British society. Its main target was to proffer a coherent legal frame bleed for the prescript of financial function and protection of investors. At the time, the government boost people for a wider share ownership and privatisation was a work in Thatcher¡¦s policy philosophy. Scandals also played an authorized role in Parliament¡¦s decision to provide the financial industry an act that everyone could rely on and work out from. At the time, information technology was brought much and more into the industry and innovation and development led to an outdated and uncompleted legal system. Would the new act frighten people to non invest their money? Or would it encourage people in working as a protecting force? quaternion sub-objectives for the new regulatory system were set out. ¡§First, the financial run industry should be able to provide its services in the most efficient and economic way. Secondly, regulation should stimulate contestation and encourage innovation and be responsive to international developments, non a cover for protectionism. Thirdly, regulation should ensure that the financial services sector was a clean place to do task and thus would inspire confidence. And fourthly, the regulations should provide a guide and non cramp structural and other changes in the industry.
¡¨ The Financial Services Act 1986 created a new method of regulation. What it did was to design a two-tier regulatory system based on the assumption that to take up investment business, a person or organisation go away have to be authorised. The authorisation came automatically if she is a component of a recognised self-regulatory organisation (SRO). Otherwise she would have to be authorised separately. To be recognised, ¡§an SRO will have to meet genuine statutory criteria designed to ensure that it will have a degree...
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