The Need for Greater Pro Active Involvement by Regulators in Financial Regulation and Supervision: Lessons From the Legal and General Case
AbstractThis paper considers the need for a more pro active approach which facilitates greater on site work being carried out by supervisors – as highlighted in the Legal and General Case. It also considers the recommendations made to the UK’s regulator - the FSA, and in particular to the FSA Board, following the Legal and General Case. The recommendations are compared to the Basel Committee’s Core Principles for Effective Banking Supervision. In drawing a comparison, the importance of independent verification of work carried out by external auditors, be it through on-site examinations or the use of external experts, is once again emphasised. The involvement of external auditors or other experts in the supervisory process should not relieve a regulator from on site supervisory responsibilities. As vital as an external auditor’s work is, it is also important to verify such work.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 13688.
Date of creation: Feb 2009
Date of revision:
pro active; monitoring; on-site; supervision; inspections;
Find related papers by JEL classification:
- K2 - Law and Economics - - Regulation and Business Law
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-07 (All new papers)
- NEP-BAN-2009-03-07 (Banking)
- NEP-PKE-2009-03-07 (Post Keynesian Economics)
- NEP-REG-2009-03-07 (Regulation)
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