Part III Financial Sectors and Activities, 18 Wholesale Investment Firms
This chapter examines the UK regulatory framework governing wholesale investment firms. It first provides a brief historical overview of the evolution of regulation with respect to investment firms, from the Anderson Report to the Bodkin Report, the Prevention of Fraud (Investments) Acts 1939/1958, and the Gower Report. The chapter proceeds by discussing the Investment Services Directive 1993, the Financial Services and Markets Act 2000 (FMSA), and the Financial Services Act 2012. It also considers the current state of financial services regulation in the European Union by focusing on the Markets in Financial Instruments Directive and the European Markets Infrastructure Regulation. Finally, it analyses the Prudential Regulation Authority's (PRA) Fundamental Rules and the Financial Conduct Authority's (FCA) Principles for Businesses, financial promotions and client communications under FMSA, and rules on dealing in securities and conflicts of interest.