Global Financial Regulation E-Book

Howard Davies

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 365

Veröffentlichungsjahr: 2013

Beschreibung

As international financial markets have become more complex, so has the regulatory system which oversees them. The Basel Committee is just one of a plethora of international bodies and groupings which now set standards for financial activity around the world, in the interests of protecting savers and investors and maintaining financial stability. These groupings, and their decisions, have a major impact on markets in developed and developing countries, and on competition between financial firms. Yet their workings are shrouded in mystery, and their legitimacy is uncertain.

Here, for the first time, two men who have worked within the system describe its origins and development in clear and accessible terms. Howard Davies was the first Chairman of the UK's Financial Services Authority, the single regulator for the whole of Britain's financial sector. David Green was Head of International Policy at the FSA, after spending thirty years in the Bank of England, and has been closely associated with the development of the current European regulatory arrangements.

Now with a revised and updated introduction, which catalogues the changes made since the credit crisis erupted, this guide to the international system will be invaluable for regulators, financial market practitioners and for students of the global financial system, wherever they are located. The book shows how the system has been challenged by new financial instruments and by new types of institutions such as hedge funds and private equity. Furthermore, the growth in importance of major developing countries, who were excluded for far too long from the key decision-making for a has led to a major overhaul.

The guide is essential reading for all those interested in the development of financial markets and the way they are regulated.

The revised version is only available in paperback.

Leseprobe

Global Financial Regulation

Global Financial Regulation

The essential guide

Howard Davies and David Green

polity

Copyright © Howard Davies and David Green 2008

The right of Howard Davies and David Green to be identified as Author of this Work has been asserted in accordance with the UK Copyright, Designs and Patents Act 1988.

First published in 2008 by Polity Press

Polity Press

65 Bridge Street

Cambridge CB2 1UR, UK.

Polity Press

350 Main Street

Malden, MA 02148, USA

All rights reserved. Except for the quotation of short passages for the purpose of criticism and review, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher.

ISBN-13: 978-0-7456-5588-8

A catalogue record for this book is available from the British Library.

Typeset in 11 on 14pt Sabon

by Servis Filmsetting Ltd, Stockport, Cheshire

Printed and bound in Great Britain by MPG Books Group, UK

The publisher has used its best endeavours to ensure that the URLs for external websites referred to in this book are correct and active at the time of going to press. However, the publisher has no responsibility for the websites and can make no guarantee that a site will remain live or that the content is or will remain appropriate.

Every effort has been made to trace all copyright holders, but if any have been inadvertently overlooked the publishers will be pleased to include any necessary credits in any subsequent reprint or edition.

For further information on Polity, visit our website: www.polity.co.uk

Contents

Acknowledgements

List of abbreviations

Update – September 2009

Introduction

1   The Objectives of International Financial Regulation

2   The Current International Regulatory System: Theory and Practice

3   The International Financial Institutions and their Role in Financial Regulation

4   The European Union: A Special Case

5   Regulatory Structures in Individual Countries

6   The Debate on Regulatory Structure

7   The Need for Reform

Afterword

References

Index

Acknowledgements

This modest volume is not the product of great original research but draws on the personal experience and knowledge accumulated during the time we spent as central bankers and then regulators, first within the long-established tradition of the Bank of England, and then engaged in the creation of the Financial Services Authority. The sources to which we refer are not comprehensive but those we have come across in the course of our day-to-day work and which struck us as useful and illuminating. Most of all, though, we have gained insights from the close collaboration and debate over the years with our fellow colleagues in the Bank and the FSA, some of whom agreed to review what we had written, whether in whole or in part.

We would particularly like to express our indebtedness to Paul Boyle, Alastair Clark and Paul Wright, each of whom reviewed an earlier draft in full, as well as to Ged Fitzpatrick, Piers Haben, Alan Houmann, Peter Parker and John Sloan, the last of whom devised the forerunners to the charts we provide to help unravel the spaghetti of international committees. We are also grateful to our support staff, without whose endless patience in deciphering manuscript scribbles or making and remaking amendments, this would have never been finalized. We would particularly mention Rachel Gibson, Carol Liuzzi, Clare Taylor Gold and Tamlyn Whittock.

Lastly, as is customary, but also necessary, we need to note that the views expressed here are entirely our own and not those of any of the organizations with which we have been associated.

Abbreviations

ACAM

Autorité de Contrôle des Assurances et des Mutuelles (France)

AMF

Autorité des Marchés Financiers (France)

APRA

Australian Prudential Regulatory Authority

ASIC

Australian Securities and Investments Commission

AuRC

Audit Regulatory Committee (EU)

BAC

Banking Advisory Committee (EU)

BAKred

Bundesaufsichtsamt für das Kreditwesen (Germany)

BaFin

Bundesanstalt für Finanzdienstleistungsaufsicht (Germany)

BAV

Bundesaufsichtsamt für Versicherungswesen (Germany)

BAWe

Bundesaufsichtsamt für den Wertpapierhandel (Germany)

BCCI

Bank of Credit and Commerce International

BCBS

Basel Committee on Banking Supervision

BIS

Bank for International Settlements

BOBS

Board of Banking Supervision (UK)

BOJ

Bank of Japan

BSC

Banking Supervision Committee (ECB)

BSC

Building Societies Commission (UK)

Buba

Deutsche Bundesbank

CBRC

China Banking Regulatory Commission

CCA

Commission de Contrôle des Assurances (France)

CDIC

Canada Deposit Insurance Corporation

CDO

Collateralized Debt Obligation

CEBS

Committee of European Banking Supervisors

CECEI

Comité des Établissements de Crédit et des Enterprises d’Investissement (France)

CEIOPS

Committee of European Insurance and Occupational Pensions Supervisors

CESR

Committee of European Securities Regulators

CFTC

Commodity Futures Trading Commission (US)

CIRC

China Insurance Regulatory Commission

CMF

Conseil des Marchés Financiers (France)

COB

Commission des Opérations de Bourse (France)

CONSOB

Commissione per le Società e la Borsa (Italy)

CPSS

Committee on Payment and Settlement Systems

CRD

Capital Requirements Directive

CSE

Consolidated Supervised Entity (US)

CSRC

China Securities Regulatory Commission

DBERR

Department of Business, Enterprise and Regulatory Reform

DICJ

Deposit Insurance Corporation of Japan

DTI

Department of Trade and Industry (UK)

EBC

European Banking Committee

ECB

European Central Bank

EFC

Economic and Financial Committee (EU)

EFR

European Financial Services Round Table

EFRAG

European Financial Reporting Advisory Group

EGAOB

European Group of Audit Oversight Bodies

EIOPC

European Insurance and Occupational Pensions Committee

ESC

European Securities Committee

EP

European Parliament

FASB

Financial Accounting Standards Board

FATF

Financial Action Task Force

FDIC

Federal Deposit Insurance Corporation (US)

FESCO

Forum of European Securities Commissions

FGD

Financial Groups Directive

FIBV

Fédération Internationale des Bourses de Valeurs

FRC

Financial Reporting Council (UK)

FSA

Financial Services Authority (UK)

FSA

Financial Services Agency (Japan – also JFSA)

FSAP

Financial Services Action Plan (EU)

FSAP

Financial Sector Assessment Programme (IMF)

FSC

Financial Services Committee (EU)

FSCS

Financial Services Compensation Scheme (UK)

FSF

Financial Stability Forum

FTA

Free Trade Agreement

GAAP

Generally Accepted Accounting Principles

GAO

Government Accountability Office (US)

GATS

General Agreement on Trade in Services

IAA

International Actuarial Association

IAASB

International Auditing and Assurance Standards Board

IADI

International Association of Deposit Insurers

IAIS

International Association of Insurance Supervisors

IAS

International Accounting Standards

IASC

International Accounting Standards Committee

IFAC

International Federation of Accountants

IFI

International Financial Institution

IFIAR

International Forum of Independent Audit Regulators

IFRS

International Financial Reporting Standards

IFSB

Islamic Financial Services Board

IIF

Institute of International Finance

IMF

International Monetary Fund

IMFC

International Monetary and Financial Committee

IMRO

Investment Management Regulatory Organization (UK)

IORP

Institutions for Occupational Retirement Provision (EU)

IOSCO

International Organization of Securities Commissions

IOPS

International Organization of Pension Supervisors

IPO

Initial Public Offering

ISAs

International Standards on Auditing

ISP

Insurance Supervisory Principles

ISVAP

Istituto per la Vigilanza sulle Assicurazioni Private e di Interesse Colletivo (Italy)

JFSA

Japan Financial Services Agency

LZB

Landeszentralbanken (Germany)

LIFFE

London International Financial Futures Exchange

MiFID

Markets in Financial Instruments Directive

NAIC

National Association of Insurance Commissioners (US)

NASD

National Association of Securities Dealers (US)

NGO

Non-Governmental Organization

NRSRO

Nationally Recognized Statistical Rating Organization (US)

OCC

Office of the Comptroller of the Currency (US)

OECD

Organization for Economic Co-operation and Development

OFC

Offshore Financial Centre

OPRA

Occupational Pensions Regulatory Authority (UK)

OSFI

Office of the Superintendent of Financial Institutions (Canada)

OTS

Office of Thrift Supervision (US)

PBOC

Peoples Bank of China

PCAOB

Public Company Accounting Oversight Board (US)

PIA

Personal Investment Authority (UK)

PIOB

Public Interest Oversight Board

PSD

Payment Services Directive

RFS

Registry of Friendly Societies (UK)

ROSC

Report on the Observance of Standards and Codes (IMF)

SEC

Securities and Exchange Commission (US)

SESC

Securities and Exchange Surveillance Commission (Japan)

SEPA

Single European Payments Area

SI

Systematic Internalizer

SIB

Securities and Investments Board (UK)

SRO

Self-Regulatory Organization

UCITS

Undertakings for Collective Investments in Transferable Securities (EU)

WFE

World Federation of Exchanges

WTO

World Trade Organization

UPDATE – SEPTEMBER 2009

Time seems to have speeded up in the world of financial regulation. For many years the global structure remained roughly the same, give or take a committee here and a forum there. And the countries which played the leading roles in designing the systems and agreements in place remained the same. The G7 has been the dominant grouping for twenty years or more.

Now all that has changed. It is not hard to see the reason why. The financial crisis which began in 2007, rumbled on through that year and through to the summer of 2008, exploded in the autumn at the time of the Lehman failure. It became clear that there had been a serious malfunction, and that attention was needed to all aspects of global financial regulation – the architecture of committees and institutions, the membership of those bodies and the rules themselves. At the same time, a number of countries decided to take a hard look at their own regulatory bodies, and their functioning.

The key political events were the three G20 summits of 2008–2009 in Washington, London and Pittsburgh. For the first time the G20 (with a couple of additional countries whose leaders talked their way in) met at head of government level and addressed a concrete agenda covering fiscal policy (outside the ambit of this book), the roles and resourcing of the IMF and World Bank (partly covered here) and the co-ordination and reform of the bodies which set the rules for financial markets – which is our central concern. The build-up to the London summit, in particular, was not easy. The G20 is not blessed with a functioning permanent secretariat, and the habits of co-operation between the members, a much more diverse group than the G7, are not well developed. Also, the new US administration was still not fully staffed to handle complex international negotiations.

So the outcomes, lengthy communiqués backed with extensive detail on new initiatives, surprised many. There is room for doubt about how significant the changes will turn out to be, and indeed for scepticism about the feasibility of some of what is proposed. But the world’s political leaders have, at the very least, thrown down a challenge to financial regulators to overhaul their practices, and to broaden and strengthen their international networks. At the same time they have implicitly taken on responsibility for financial regulation as a matter of global concern.