FINANCIAL REGULATION FIVE YEARS ON: THE INVESTIGATIVE POWERS OF THE SROS
| Published date | 01 February 1993 |
| Pages | 347-354 |
| Date | 01 February 1993 |
| DOI | https://doi.org/10.1108/eb024781 |
| Author | DESMOND HIGH,Nalin Shah |
| Subject Matter | Accounting & finance |
FINANCIAL REGULATION FIVE YEARS ON: THE
INVESTIGATIVE POWERS OF THE SROS
Received
(in revised
form):
1st
June,
1993
DESMOND
HIGH AND NALIN
SHAH
DESMOND HIGH BA FCA
IS A DIRECTOR OF CHANTREY VELLACOTTS
FINANCIAL RECITATION AND INVESTIGATION
GROUP HAVING QUALIFIED AS A CHARTERED
ACCOUNTANT IN 1979 HE SPENT SIX YEARS
WITH ERNST & WH1NNEY (NOW ERNST &
YOUNG). TWO AND A HALF IN LONDON AND
THREE AND A HALF IN SYDNEY ON
RETURNING TO THE UK IN 1986, HE MOVED TO
A SMALLER PRACTICE AND SHORTLY AFTER
ITS ABSORPTION BY CHANTREY VELLACOTT IN
1988.
BECAME A PARTNER SPECIALISING IN-
CORPORATE FINANCE IN 1990 HE BECAME THE
FIRST SECONDEE FROM THE ACCOUNTANCY
PROFESSION TO JOIN THE DTI
INVESTIGATIONS DIVISION WHERE HE SPENT
TWO YEARS CARRYING OUT CONFIDENTIAL
ENQUIRIES INTO BOTH PRIVATE AND PUBLIC
COMPANIES UNDER S. 117 OF THE COMPANIES
ACT 1985.
NALIN SHAH BSC(ECON) ACA
IS AN AUDIT PARTNER AT CHANTREY
VELLACOTT AND A MEMBER OF THE FIRM'S
FINANCIAL REGULATION AND INVESTIGATION
GROUP. HE QUALIFIED IN 1981 W1TH TOUCHE
ROSS & CO AND JOINED CHANTREY WOOD
KING IN 1983, BECOMING A PARTNER IN 1987.
HE ADVISES CLIENTS ON REGULATION UNDER
THE FINANCIAL SERVICES ACT
1986
AND ACTS
AS AN AUDIT PARTNER FOR THE FIRM'S
CLIENTS IN THE FINANCIAL SERVICES SECTOR.
BOTH AUTHORS HAVE UNDERTAKEN
ASSIGNMENTS IN CONJUNCTION WITH, OR ON
BEHALF OF REGULATORS.
ABSTRACT
The
authors review the
powers
of
SIB
and
the
SROs, particularly in relation to
com-
pliance
and investigations, and attempt to
assess their
effectiveness.
INTRODUCTION AND
BACKGROUND
The
29th April, 1993, was the fifth
anniversary
of 'A' clay, the date on
which
the Financial Services Act
1986
(FSA) became operational.
Since
then there has been a wide-
ranging
debate over the effectiveness
of
this regime, which is not surpris-
ing
given the fundamental impact it
has
had on the provision of financial
services.
The
Act has spawned a vast
number
of acronyms and the Clucas
Report,
published in March 1992,
proposed
another, now known as the
Personal
Investment Authority (PIA)
to
replace the Financial Intermedi-
aries,
Managers and Brokers Regula-
347
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