w system is a compromise between the best of self regulation and statutory regulation to ensure the financial markets work in an efficient and orderly manner. The FSA reinforces the orderly operation of the UK markets. For example, when a firm wishes to list on the London Stock Exchange (LSE), they must satisfy requirements of the previously self-regulatory LSE as well as the United Kingdom Listing Authority (UKLA), which is a body of the FSA. Both authorities work closely together and have powers of instituting disclosure requirements, compliance of provisions and enforcement of standards. (LSE, 2000).The regulation of financial markets is changing continually all over the world. In Europe, membership of the EU has changed the priorities of Governments when facing the problems of changing or implementing regulation of the financial system, "One of the main issues confronting the regulation of markets and financial institutions is cooperation from other jurisdictions"Quinn’s 1992 article asserts that the harmonisation of banking rules in the EU, the co-ordination of countries own regulatory standards and centralisation of an EU integrated financial market are needed to enable swift reaction to any future market failure. (Quinn, 1992).Standards differ greatly across countries. Ireland’s Central Bank is the primary regulator of financial markets. In the UK, the newly established FSA has taken over the reins from the Bank of England and in Denmark, a separate regulatory authority also exists, (Stewart, 1995). The differences are not solely institutional, there are also huge variations in the powers of these differing institutions. In Ireland the system is viewed as:"far too fragmentary to be effective" ( Stewart, 1995). Any powers of investigation and enforcement are unclear and appear ineffective. In Germany, a financial regulator also exists. The effectiveness of their regulation has recently been questioned. The Neuer Markt,...
