Financial regulation/Addendum

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This addendum is a continuation of the article Financial regulation.

Regulatory and supervisory institutions

Regulators

International

Basel Committee on Banking Supervision:[1]
Financial Stability Board (formerly Financial Stability Forum) International Organization of Securities Commissions[2]

United States

Federal Reserve System:[3]

Federal Deposit Insurance Corporation[4]

Office of the Comptroller of the Currency[5]

National Credit Union Administration[6]

Europe

Responsibility for financial regulation in the European Union rests with the various national authorities, have recently adopted unified regulatory procedures.

United Kingdom

Financial Services Authority (UK)[7]

Central banks

The Federal Reserve System[8]

The European Central Bank[9] since the establishment of the euro as a common currency in 1999, the European Central Bank has operated the monetary policy of the European monetary system with objective of maintaining price stability, without generating excessive fluctuations in output.

The Bank of England[10]

International institutions

The International Monetary Fund[11] was set up in 1944, mainly to provide loans to member governments in support of policies to deal with balance of payments problems. In recent years it has also devoted its resources to the strengthening of the international financial system and relieving financial crises. It also advises member governments about their economic problems and, when necessary, it grants loans to help resolve them.

The World Bank provides low-interest loans, interest-free credit and grants to developing countries, finances selected private sector projects,. guarantees foreign investors against non-commercial risks and settles disputes between foreign investors and host countries.

The Bank for International Settlements serves as the central banks’ bank and provides a forum to promote discussion and policy analysis among central bank governors and senior executives. Its committees include the Basel Committee on Banking Supervision and the Committee on the Global Financial System. It provides a home for the Financial Stability Board.

Legislation

The United States

  • The Sarbanes-Oxley Act 2002[12] - intended to protect against financial irregularity in public companies. (A response to major corporate failures that involved poor auditing, such as Enron and Worldcom.
  • Restoring American Financial Stability Act of 2010 [13][14] (Senator Dodds' summary [15]) - creates a council to regulate systemic risk, gives the Federal Reserve new powers to regulate banks, and provides for government takeovers of failing banks.
  • Private Fund Investment Advisers Registration Act (discussion draft)[16]
  • Accountability and Transparency in Rating Agencies Act (discussion draft). [17]
  • The (proposed) Volcker Rule under which banks will "no longer be allowed to own, invest, or sponsor hedge funds, private equity funds, or proprietary trading operations for their own profit, unrelated to serving their customers.[18].

The European Union

  • The Markets in Financial Instruments Directive, 2007[19]
  • Directive on Alternative Investment Fund Managers (draft)[20]
  • Draft Regulation on Community macro prudential oversight of the financial system and establishing a European Systemic Risk Board
  • Draft Council Decision entrusting the European Central Bank with specific tasks concerning the functioning of the European Systemic Risk Board
  • Draft Regulation establishing a European Banking Authority
  • Draft Regulation establishing a European Securities and Markets Authority

The United Kingdom

  • Banking Act 2009 - amends the Financial Services Compensation Scheme; (a framework of rules designed to prevent firms from failing), and introduces a "Special Resolution Regime" to deal with failing banks and building societies.
  • Financial Services Act 2010 [21][22] - creates a Council for Financial Stability to co-ordinate the responsibilities and action of the Bank, FSA and Treasury concerning financial stability

References