INTERNATIONAL INVESTMENT MANAGEMENT WITHIN A REGULATORY FRAMEWORK
| Pages | 370-375 |
| DOI | https://doi.org/10.1108/eb024784 |
| Date | 01 February 1993 |
| Published date | 01 February 1993 |
| Author | ALAN THOMAS |
| Subject Matter | Accounting & finance |
INTERNATIONAL INVESTMENT MANAGEMENT WITHIN A
REGULATORY FRAMEWORK
Received: 13th April, 1993
ALAN THOMAS
ALAN
THOMAS
IS
AN ADVISER ON MEMBER ASSESSMENT AT
IMRO.
PRIOR
TO
JOINING
THE SRO
IN
JANUARY
1993, HE HAD WORKED IN THE CITY OF
LONDON
AS AN INVESTMENT ANALYST,
INSTITUTIONAL
STOCKBROKER,
INTERNATIONAL
TRADER AND FUND
MANAGER. HIS CAREER HAS INVOLVED
INVESTING
ON THE UK, EUROPEAN, US,
CANADIAN,
JAPANESE,
HONG KONG AND
AUSTRALIAN
STOCK MARKETS, MANAGING
PORTFOLIOS
FOR PENSION FUNDS, UNIT
TRUSTS
AND OFFSHORE PERFORMANCE FUNDS.
HE
HAS WIDE EXPERIENCE OF INTERNATIONAL
INVESTMENT
AND ECONOMIC STRATEGY,
CURRENCY
MANAGEMENT AND UTILISATION
OF
DERIVATIVES IN STOCK AND COMMODITY
TRADING.
ABSTRACT
This paper is based
on
the author's
experi-
ence
and
comments
on
the daily life
of fund
managers
and
stockbrokers,
along
with the
nature of
the networks
within
which
many
operates.
The paper
attempts
to provide a
guide to current market conditions and
how
regulators
may
respond
to
challenges
to
the self-regulatory process.
INTRODUCTION
As all investment businesses in the
UK must now be authorised under
the Financial Services Act (1986)
(FSA),
normally through member-
ship of a self-regulatory organisation
(SRO) or recognised professional
body (RPB), stockbrokers and fund
managers are clearly unwise if they
fail to behave in accordance with the
rules and principles of their respec-
tive SRO. To many of an older
generation this can be irksome. A
working lifetime spent largely within
the somewhat free-form nature of
the pre-1986 investment business
was not an ideal introduction to
regulation.
For those of a younger genera-
tion who know little of pre-regula-
tion UK investment life, there are
other problems. Taking regulators
for granted and relying on their
compliance officer to get them out
of scrapes with the system can lead
to serious problems. Equally regula-
tors have to understand the con-
siderable pressures caused by the
need to generate commission and
the constant review of performance
370
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