THE REGULATION OF TRADE IN FINANCIAL SERVICES
| DOI | https://doi.org/10.1108/eb024814 |
| Published date | 01 March 1994 |
| Pages | 248-256 |
| Date | 01 March 1994 |
| Author | PETER A. VIPOND |
| Subject Matter | Accounting & finance |
THE REGULATION OF TRADE
IN
FINANCIAL SERVICES
Received
(in
revised form): 23rd May,
1994
PETER A. VIPOND
PETER
A.
VIPOND
IS PRINCIPAL LECTURER
IN
FINANCIAL
SERVICES
AT
LONDON GUILDHALL
UNIVERSITY.
HE IS
ALSO
A
VISITING FACULTY
MEMBER
AT A
FRENCH BUSINESS SCHOOL.
HE
HAS
HAD
WORK PUBLISHED
ON
FINANCIAL
SERVICES REGULATION, CAPITAL ADEQUACY
AND
THE
IMPACT
OF
BOTH
ON THE
STRATEGIC CHOICE
OF
COMPANIES.
ABSTRACT
Although much of the
debate about
finan-
cial regulation tends
to be
focused
at
product,
firm
or
market
level,
international
trade
agreements
are of
growing
import-
ance. This paper explains
why
these
'macro'
rides
have
come
into
existence
and
examines some
of the
more important
at a
multilateral
and
at
a
regional
level.
Recent
trade agreements
have
major consequences
for
trade
in financial
services,
the rights
of
establishment
and
the way financial mar-
kets will
develop.
They provide
a
frame-
work
for
nation states
to
affect both
the
pace
and
nature
of
linkages between
domestic
and
international markets.
As
such this
design
of
the rules
for
financial
services
is, in
part
at
least,
the
design
of
markets by
regulators.
The paper
examines
some
of
the more important rides
and
com-
ments
on
linkages
to
other areas
of regula-
tory
activity.
The regulation
of
Financial services
can
be
conceived
of in
generic terms,
but analysis requires that
the
com-
ponent parts
of
financial regulation
are disaggregated.
One
part
of
regu-
lation,
the
subject
of
this paper, con-
cerns
the
agreements reached
between countries
on the
trade
in
financial services. Through these
agreements, rules
are
established
for
market access including, amongst
other matters,
the
right
of
establish-
ment
and the
cross border selling
of
financial products.
Within
two
years
a
number
of
major international trade agree-
ments have been negotiated that will
have
far
reaching consequences
for
the financial services industry, itself
subject
to
forces that
are
driving
it
toward internationalisation
in
some
sectors
and
globalisation
in
others.
These agreements include
the
Uruguay round
of the
multilateral
as
well
as
regional
trade agreements, especially
the
North American Free Trade Area
248
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