ACCTG 1 Lecture Notes - Lecture 35: Bankers' Bonuses, Financial Regulation, Stock Market
Document Summary
Personal financial planning history of financial regulations. People need to have confidence that the system is safe and stable, and functions properly to provide critical services to the wider economy. It is important that problems in particular areas do not lead to disruption across the financial system . Examples of financial instituions: banks, building societies, pension funds, financial services providers. Recent history of financial regulations: self-regulation (1970 1986, deregulation in the city of london (1986, the beginning of financial services regulation (1986 1997, financial services authority (1997 2013, regulation since 2013. Benefits: self-regulation helped to assess and monitor firms to, maintain market confidence, create awareness of financial goods/services, protect consumers and reduce fraud. It is more flexible and cheaper than government regulation. Limitations: the risks of self regulation include, conflict of interest, legal requirements, an argument against it is that self-regulation is no regulation.
