This website uses cookies to ensure you have the best experience. Learn more

Eu And Uk Financial Services Industry

1771 words - 8 pages

M1 - explain reasons why recent UK & EU legislation and regulatory decisions may be likely to inspire investor confidence in the UK financial services industry
In the financial services industry, it is key to make sure that the customers and investors have confidence in what they are taking part in. The financial world has not got a very good reputation at the moment thanks to scandals that have happened in the past which have caused huge problems mainly for investors and customers – for example with Bernie Madoff who lost a ridiculous amount of money because he kept investing to try and cover up his ever rising amount of debt.
Thankfully for financial services, the FSA (financial services ...view middle of the document...

(Wikipedia, 2014)
However, in today’s day and age, there are the PRA and the FCA. The PRA – Prudential Regulation Authority – was created with two purposes – to promote safety of financial institutions especially insurers and also to secure protection for policyholders. This means that the PRA are in charge of the securities in the financial sector, as this is their two objectives. This has replaced the FSA’s security measurements and made them more specific and a lot stronger. (Wikipedia, Prudential Regulation Authority (United Kingdom) - Wikipedia, the free encyclopedia, 2014)
The FCA – Financial Conduct Authority – regulates the financial institutions in the United Kingdom. It doesn’t work with the UK government, and it gets its money from charging the financial institutions that are in the UK. The FCA provides services to maintain the integrity of the financial services and markets in the UK – it is mainly for retail and wholesale finance services. (Wikipedia, Financial Conduct Authority - Wikipedia, the free encyclopedia, 2014)
The financial services do have ways of becoming stronger again and gaining back the confidence from their customers – for example when Northern Rock went bust, a reliable and well known company - Virgin – came in and bought it outright, clearing all the debts and converting it to one of their banks. It is now working normally again like Northern Rock was before the financial collapse.
These changes allowed the financial world to be safer and secure – the financial market in the UK is very fragile at this moment in time as it is still recovering from the disaster of the credit crunch in 2008. As many people know, because of the credit crunch, these measures were put into place to make sure that customers know that they can rely on the institution that they bank with because nothing is worse than losing all of your hard earned money and you cannot get it back.

The consumer protection act was introduced in 1978 – it was introduced to protect people who have purchased products that were damaged and to respect things such as prices. The consumer protection act is very useful for a customer – this is most likely where the term “the customer is always right” comes from, because they are covered and protected by this act. For example, if someone purchases a television but it is faulty, then the place they purchased it from have to either give a refund or replace the faulty item.
The consumer protection act amended some acts that were made previous to 1978, for example it amended part 1 of the Health and Safety at Work act of 1974. This made sure that employees were protected as well, as they were able to work under suitable and safe conditions in their work environment.
The consumer protection act inspires huge confidence in the market today. Many people know that if they buy something and it is broken that it can be solved very quickly and easily – very often is there hassle when sorting out such a dilemma, however there...

Find Another Essay On EU and UK Financial Services Industry

The Financial Crisis and UK Bank Scandals

1273 words - 6 pages The Financial Crisis and UK Bank Scandals In September 2007 the UK banking industry began exhibiting symptoms of the financial crisis that started in America in 2006. Northern Rock was in trouble and had to ask the Bank of England for help. When news of this got out customers started queuing around the block to withdraw their money. In 2008 Northern Rock was nationalised, and in 2012 it was bought by Virgin Money. Today the banking industry

Country report of UK and petroleum industry

6839 words - 27 pages , support services and marketing staff are additional.Thus oil and petroleum industry employs approximately 1% of workforce, and 0.5% of total population.Industry's contribution to the UK Economy:- The UK has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial nation. The UK offshore oil and gas industry is one of the country's major economic successes. Oil and gas

Regulation of Banking and Financial Services

1525 words - 6 pages Regulation of Banking and Financial Services The Failure Process Imposed Upon Financial Institutions The concept of systemic risk sprung to the foreground of the public’s consciousness during the financial crisis of 2007-8 as the Too Big To Fail (TBTF) banks were bailed out by the various US Federal Government agencies e.g., US Treasury via the Troubled Asset Relief Program (TARP) and the US Federal Reserve via Quantitative Easing (QE). However

Ethics and Financial Industry meltdown

1885 words - 8 pages Introduction Financial organizations and the banking industry have supported their customers for centuries. Their purpose is to assist their customers in increasing and securing their wealth, provide services such as loans to business and customers, and provide their stockholders profits. While being a very mature industry, somehow things went very wrong in the mid to late 2000’s, what was a very active housing market in the United States came

Research and Development and Financial Performance of UK Manufacturing Firms

1168 words - 5 pages Research and Development and Financial Performance of UK Manufacturing Firms UK manufacturing firms have many factors which influence their financial performance. Research and Development could be a key factor in determining a firms success, however it does not assure financial improvement in all businesses due to the extensive variety of business types. Research and Development can be defined as the scientific

What regulatory measures have been taken to protect online consumer rights both at the UK and EU level?

4170 words - 17 pages , "about one-fifth of the whole electronic commerce is accounted for by business-to-consumer (B2C) transactions" . As such, "consumer trust is essential for its future development" . In the last 5 years, the government has contended that the introduction of several layers of regulation based on EU legislation into UK law has increased customer confidence in e-businesses and increased these businesses standards of good practice . In this essay I

UK Online Air Line Industry: Advantages and Disadvantages of ICT

6424 words - 26 pages costs on tickets bought through Orbitz. (McCarthy, 2002) Airlines with strong brands and loyalty programmes are able to create very advantaged deals with non-airline industry players to provide additional services and products to their customers, such as hotels, car rentals, insurances, etc. (Pappas, 2000) How do UK airline companies use various digital technologies, why? How &why do the strategies &offerings of companies differ

• Explain how the EU and the US coped with the recent financial crisis

764 words - 3 pages • Explain how the EU and the US coped with the recent financial crisis. During the last several months we have witnessed one of the most trying times for financial markets in several decades, perhaps since the 1930's Great Depression. The originators of lower quality mortgages in the United States had strong incentives to meet a constant and, indeed, increasing demand for securitized products of some form or another. There

UK Health Services Not Meeting the Needs to Identify Specific Health Measures for Gay and Bisexual Men

2085 words - 8 pages sexual health. However, reflecting (Gibbs, 1998) on the status of the focus community and steps taken to promote health in the same on the basis of available research it could be concluded that current UK health services may not be meeting and there is a need to identify and target specific health measures for gay and bisexual men in order to ensure improved physical and mental health in the longer term and considering the suggestions made in

Vocational rehabilitation for people with mental illness in the UK. How occupational therapy services can get involved and help

6500 words - 26 pages is an obvious disagreement among WCM and the competitive strategies example. The competitive strategies approach recognize two competitive advantages, either of which can be winning, but only independently. Attempting to pursue concurrent competitive advantages will consequence in "strategic mediocrity," except for firms in strange industry niches (Porter, 1991: 40). This appears to disagree with WCM's intentional goal of at the same time

The Industry of East Tennessee Coal and Its Financial Impact

2090 words - 8 pages to the state of Tennessee. This paper examined the industry, how coal is mined within the state and the financial impact is has on the state of Tennessee.  References (n.d.). Bituminous coalfields of east Tennessee. Retrieved from ESRI. (2012). Surface coal mining and reclamation. Retrieved from

Similar Essays

Financial Services Industry Report

1092 words - 4 pages , 2000, p. 1).Roles of Financial Institutions in the Global EconomyCountries must keep pushing ahead to continuously improve their competitiveness to create new business value within the financial services industry. Firms' operating environments are changing significantly. For example, competition from emerging economies has intensified, and rapid progress in IT has reduced the life span of existing competitive strengths by lowering the barriers of

Financial Services Industry Report

1626 words - 7 pages This paper will attempt to explain the roles of financial institutions in the global economy while also looking into the future of the financial services industry over the next decade and speculating as to how the industry is likely to change. Finally, I will examine how these changes might impact the stakeholder relationships my organization has with financial institutions.To understand the role financial institutions play in the global economy

Industry Analysis Of Indian Banking And Financial Services

1762 words - 7 pages SECTOR-1 (BANKING & FINANCE INDUSTRY SECTOR) INDUSTRY ANALYSIS: INRODUCTION: Indian banking and financial services industry is strong and robust among the world economies. Over the previous years, financial markets have witnessed a significant deepening and broadening of services with the introduction of new instruments and products in banking, capital markets space and insurance. Insurance Sector: The life insurance sector collected new

Financial Services Functions And Roles Essay

1249 words - 5 pages Introduction:The financial systems are markets that exist in every country (as long as money is involved, so is the financial system)It is an essential part of the economyIt also help in the growth and development of the economyIts main role is to provide services that help business to operate correctly and smoothlySince it has a huge impact on the economy and deeply involved with money, there is a need of controlling and supervising.Thus the