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 authority) and now the Prudential Regulation Authority and Financial Conduct Authority, were put in place to restrict scandals happening like the ones previous to today. The FSA was abolished in 2008 after the financial scandal and the credit crunch in the UK.
In 2000, there were changes to the FSA. The Financial Services and Markets Act of 2000 demanded that four rules were abided to, which were:
• Market confidence – making sure that customers and investors alike have confidence in the financial system and institutions otherwise they are at risk of
• Financial Stability – making sure that the financial world is protected and making sure that finances in the UK are stable
• Customer protection – making sure that customers are protected (financially)
• Reduction of financial crime – restricting the possibility of financial crime occurrence.
There are many regulations that make sure that there are no problems with the financial system because it would be difficult to live without it, however many people will take their money elsewhere if the UK...
... middle of paper ...
... to work in pension provision and have certain safeguards of employment.
The occupational pension regulatory authority give confidence to their customers because there are legal informants in place to make sure that the customer is not taken for granted and that they are informed correctly of the infringements that may come along with a certain type of pension. All the people that work for them are properly qualified to work in this type of work and this means that they are reliable which allows the customer to feel safe and secure when working in harmony with the occupational pension regulatory authority. Because they are working on continuously improving the standards that are set in the pension sector, it means that there is less likely a chance of there being more problems causing the customer to not receive the correct type or amount of money for their pension.
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