Implementing Financial Regulation: Theory and Practice


Implementing Financial Regulation: Theory and Practice examines the most important aspects of the UK financial regulatory environment introduced by the Financial Services and Markets Act 2000. These aspects are firstly, the move towards risk-based regulation and in particular FSA’s risk-based operating framework for supervision; secondly, the trend towards direct regulation of individuals within financial services businesses and in particular senior managers; and thirdly how regulatory rhetoric and action have changed over the last twenty years to mirror the re-drawing of the boundary between collective and personal responsibility that has led to increasing emphasis on financial citizenship and personal financial autonomy that has taken place over the same period. Highlights include:
  • What does (and should) risk-based regulation mean? How does FSA interpret and use conceptions of “risk”?
  • How FSMA 2000 and the FSA Handbook have built a bespoke governance regime for the finance sector regulatory apparatus governing senior management responsibility, arrangements, systems and controls?
  • How is the regulatory regime with its increased emphasis on issues internal to the business of governance, organisation and performance by key individual staff being made to “bite” at the level of FSA enforcement against firms and individuals?
  • Can regulation and regulators employ their techniques to empower and enable individual financial citizens to make rational choices faced with a dizzying array of (increasingly directly regulated) products and services?

The book aims to explain and critique each of these features in terms of broader trends in thinking and practice about regulation and the appropriate individual allocation of risk and governance responsibilities in some other areas of business law. It asks whether insights provided by social theorists into both the possibilities and limits of regulation can aid understanding of some of these more novel features of the UK financial regulatory landscape.

JOANNA GRAY LL.B. (Newcastle), LL.M. (Yale) Reader in Financial Regulation, University of Newcastle upon Tyne and Solicitor (England and Wales) has also taught at the Universities of London, Dundee, and Strathclyde and qualified as a solicitor with a leading City of London practice for whom she subsequently worked as a consultant. In 2000 returned to practice full-time doing advisory work relating to financial regulation at a leading Edinburgh law firm.
She taught the first UK undergraduate Law School course of its kind in 1986-1987 in financial services regulation at UCL (jointly with Dr Cento Veljanovski an economist). She has had extensive experience in training and consultancy work in financial services law and regulation both for law firms and for industry and has published widely in academic and industry journals on financial services law and company law.

JENNY HAMILTON Professor in Law, University of Strathclyde, UK has taught at the University of Strathclyde for the past nine years, primarily in the field of commercial law, consumer law and financial services regulation. Qualified as a barrister and solicitor in Australia she practiced law and taught in Australia before moving to Scotland in the mid 1980s where she has since taught. She is also a visiting lecturer on the LLM program at Monash University, Australia.
She was formerly a Council member of the Scottish Consumer Council (1999–2003) and is currently the Council Moderator of a co-operative lending society based in the north of England that aims to reduce poverty in the world, by providing fair and just financial services.



1. Regulation in context.

2. Aligning risk and regulation: FSA’s risk-based operating framework.

3. Regulation within the regulated firm: legislation and rules.

4. Senior management regulation: evidence and practice since N2.

5. The wider regulatory and legal context for senior management.

6. Regulation and the emergence of the financial citizen.

7. An illustrated critique of meta regulation and concluding comments.