Financial services regulation and the Internet
| Pages | 135-149 |
| Date | 01 February 1998 |
| Published date | 01 February 1998 |
| DOI | https://doi.org/10.1108/eb024964 |
| Author | Heather Rowe |
| Subject Matter | Accounting & finance |
Journal
of
Financial Regulation
and
Compliance
Volume
6
Number
2
Financial services regulation and the
Internet
Heather Rowe
Received (in revised form): 10th February, 1998
Lovell
White
Durrant,
65
Holborn
Viaduct,
London
EC1A 2DY; tel: 0171 236 0066; fax: 0171 248 4212.
Since joining Lovell White Durrant, a
major London law firm, as a banking
lawyer,
over ten years ago, Heather Rowe
has specialised in advising in relation to
companies in the fields of telecommunica-
tions and computers. In addition to
work-
ing on technology joint ventures, she has
drafted on a regular basis, turnkey pro-
jects in the computer/telecommunications
field, agreements relating to hardware and
software supply and development, stan-
dard terms and conditions of supply/pur-
chase in the information technology field,
electronic banking agreements and stan-
dard terms, EDI and network agreements.
In the banking field, data protection and
privacy issues are especially important,
hence Heather has a particular interest in
this area which is equally crucial for tech-
nology companies and those who maintain
substantial databases. She is Chairman of
the International Chamber of Commerce's
International Working Party on Data Pro-
tection and Privacy, as well as being a
member of the International Chamber of
Commerce's UK Committee on Computing,
Telecommunications and Information
Policy. Heather is also a Vice-Chairman of
the International Bar Association's Com-
mittee R.
ABSTRACT
The great
attractions
of
the
Internet are its flex-
ibility and its international reach and, some
might say, its
anarchic
nature.
However, a company planning advertising or
trading on the Internet must not assume that it
is not regulated. This is simply not true. This
paper focuses primarily on the regulation affect-
ing advertising and the financial services sector
(which is already a heavily
regulated area
in its
own right). Financial
services
companies should
be aware, however, that there is a raft of
other
relevant legislation, such as data protection
(including the trail-blazing data protection bill
published on 14th January 1998) which is
required
to implement a 1995 EU Data Protec-
tion Directive in the United Kingdom.
GENUINELY NEW CONCERNS/UNIQUE
FEATURES ARISING FROM USE OF THE
INTERNET
The Internet is simply a medium of com-
munication and, as such, is subject to many
areas of law of general application. For
example, a libel, an act of harassment, a
breach of copyright or a fraudulent activity
is just as actionable when perpetrated
through the Internet as when perpetrated
through a more conventional medium.
The Internet also raises the issue of
where a transaction takes place. This is
relevant because it determines the regula-
tory and legal system(s) to which a party
or transaction is subject. However, pro-
blems in determining the location of a
cross-border transaction and its governing
law are by no means new but, given the
global nature of the Internet, these issues
are going to come up time and again with
Journal of Financial Regulation
and Compliance, Vol. 6, No. 2,
1998,
pp.
135-149
Henry Stewart Publications,
1358-1988
Page
135
To continue reading
Request your trial