Global Financial Sector Reform: The Single Financial Regulator Model Based on the United Kingdom FSA Experience - A Critical Reevaluation

Abstract

In this article, the author attempts to reevaluate the United Kingdom’s unified financial regulator, the Financial Services Authority (FSA), as a viable international regulatory model for global financial sector reform structures. The author provides an overview of the legal and organizational nature of the FSA, as well as a discussion of the policy and practical considerations entailed in choosing between a single or multiple regulator structure. The article also contemplates two important collateral regulatory issues: (1) the unitary versus functional regulation debate; and (2) the interfacing of a mega-regulator model with the need for a modern deposit insurance/compensation scheme. The author closes with a set of meaningful conclusions drawn from and "lessons to be learned" with regard to the new UK regulatory scheme and the collateral issues considered in this article.

It is hoped that this article will provide helpful background and policy information for lawmakers, policymakers, and concerned industry participants when considering the pros and cons of the adoption of an FSA mega-regulator structure.

Keywords: global financial sector reform, single financial regulator model, financial regulation policies, Financial Services Authority, FSA, UK-FSA, mega-regulator, unitary regulation, modern deposit insurance, Financial Services Compensation Scheme