The Fsa Regulatory Policy of Rule-Use : A Move Towards More Effective Regulation?

The function of legal rules as technical instruments of social organisation and how to make them work effectively has become an increasingly importance focus of attention for those interested in regulation. This essay examines the financial regulation in the UK and in particular the regulatory policy of rule-use of the present regulatory authority responsible for the supervision and regulation of financial markets, the Financial Services Authority (FSA). The following themes are discussed: How did the regulatory policy of rule-use grow out of existing institutional arrangements? What were the factors that shaped it? What are its characteristics? Has it succeeded in making financial regulation more effective? As it will be shown, the formation of regulatory standards is context dependent and relies heavily on the institutional configurations and dominant ideology of the time. Towards the end of this essay, certain concerns will be raised pertaining to the assumed eligibility of the present regulatory policy of rule-use to improve regulatory effectiveness