
Contents
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Introduction: From Consolidation to Collaboration Introduction: From Consolidation to Collaboration
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Structure Structure
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Framework Framework
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Sources of complexity Sources of complexity
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The regulators’ functions The regulators’ functions
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Other bodies and their functions Other bodies and their functions
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Scope Scope
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Regulated activities Regulated activities
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Exemptions Exemptions
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Financial promotions and misleading statements Financial promotions and misleading statements
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Territorial scope Territorial scope
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Markets Markets
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Miscellaneous Miscellaneous
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Confidentiality and disclosure Confidentiality and disclosure
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Relationship to external legislation Relationship to external legislation
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Future Development Future Development
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2 Statutory Framework for UK Financial Services Regulation
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Published:March 2014
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Introduction: From Consolidation to Collaboration
The regulatory reforms culminating in the Financial Services Act 2012 (‘FSA 2012’) and the break-up of the Financial Services Authority (‘FSA’) have complicated but in many ways reinforced the original vision of a consolidated statutory framework for all financial services regulation under the Financial Services and Markets Act 2000 (‘FSMA’). Apart from the emergency legislation required to address the banking crisis of 2007–2008,1 there has been no attempt to re-establish separate statutory regimes for banking, insurance, markets, or other sectors. Indeed, the planned extension of FSMA to cover consumer credit regulation from 1 April 2014 has led the Government to claim that it will, ‘for the first time, bring conduct of business regulation under a single financial services regulator, ending confusion for consumers, duplication for many firms, and ensuring a single strategic regulatory view across retail financial services’.2 While the Government has created a new regulation of financial conduct regime, the integrated model of prudential regulation set up under FSMA has essentially been kept intact except that responsibility for prudential supervision of systemic and non-systemic firms has been divided.
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