Handbook of Anti-Money Laundering.

CHAPTER 6THE UK REGULATORY FRAMEWORK

6.1 BACKGROUND

In the UK, financial services regulation has travelled through a series of routes to arrive at the current position, which itself is in a period of change. Initially, regulation in the UK for banking was the clear responsibility of the Bank of England, with its powers being enshrined in a series of banking laws and guidance published in various regulations.

This changed with the development of broader financial services regulation as a result of the implementation of the Financial Services Act 1986. This did not really change the responsibilities of the Bank of England, which remained a full central bank with responsibility for the regulation of banks, but introduced the Securities and Investments Board. The Board carried out very little direct regulation, but did ensure that a series of industry-based regulators achieved the standards of regulation required. Effectively, this enshrined the principle of self-regulation which became a driver for UK financial services regulation for a decade. The Securities and Investments Board was eventually replaced by the Financial Services Authority (FSA), which also took over the responsibilities for the majority of the self-regulatory bodies that previously existed (for example, the Personal Investment Authority (PIA) and the Investment Managers Regulatory Organisation (IMRO)).

6.2 THE FINANCIAL SERVICES ACT 2012

The most recent development came on 1st April, 2013, when the Financial ...