The role of the regulator, auditor and banker: the limits of regulation

A thesis submitted in partial fulfilment of the requirements of the University of Wolverhampton for the degree of Doctor of PhilosophyOccasional academic works have discussed the new developments in the supervision and control of the London Capital Market, but no consolidated work has previously analysed the holistic approach of the Financial Services and Markets Act 2000 (FSMA 2000) or the operations of the single controller and regulator, the Financial Services Authority. This work compares the Bank of England's and the Financial Services Authority's regimes to argue that: The supervision of banks and credit institutions is necessary for ensuring a system of prudential banking in which there is risk minimisation, financial stability of markets and protection of investors and depositors. The growth of financial conglomerates has required a holistic approach to the monitoring and control of risk in the banking industry and to the provision of protection for consumers. It is apparent in the evolution of the banking and financial system that market forces made the single regulator inevitable. In the process of this argument there is detailed analysis of financial-stability issues, the prudential supervision system under FSMA 2000 (focusing particularly on solo and consolidated systems of supervision), the system of corporate governance, the enforcement-style and sanctions that govern banking supervision, and the system of accountability for auditors and regulators introduced by FSMA 2000