Legislative and regulatory responses to the global financial crisis from within the United Kingdom

Abstract

Purpose

The purpose of this paper is to report and review the legislative and regulatory responses to the global financial crisis (GFC) from within the United Kingdom (UK).

Design/methodology/approach

The paper observes aspects of the effect of the GFC within the UK, using economic statistics and institutional case studies. It summarises the laws that the European Union (EU) and the UK have produced in the wake of the crisis and recommends approaches to be taken from this point.

Findings

The regulators are putting in place a comprehensive, integrated framework, much of which is sensible in its content. However, this structure will be insufficient to re-establish the effective operation of the financial sector, unless firms comply with the rules and a “relationship culture” is developed.

Research limitations/implications

It is not yet clear how the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) will perform and coordinate.

Originality/value

The paper presents a comprehensive review of relevant EU and UK legislation, thereby bringing readers up to date with the situation in the UK.

Citation

Baber, G. (2014), "Legislative and regulatory responses to the global financial crisis from within the United Kingdom", Journal of Financial Crime, Vol. 21 No. 2, pp. 124-148. https://doi.org/10.1108/JFC-09-2013-0053