Publication Type
Journal Article
Version
acceptedVersion
Publication Date
10-2021
Abstract
Key pointsThe 2006 UK Retail Distribution Review identified much-needed reforms to the retail investment markets. It suffered chronic problems arising from the provision of conflicted advice by financial advisers to their clients. The global financial crisis (GFC) added intense urgency to the need for reforms.As a result, commission-based charging for financial advisers were banned in 2012, and the requirements under the suitability rule were more sharply defined.This article traces the trajectory of the pre- and post-GFC reforms and the ways in which the judicial interpretations of the legislative reforms played an important role in regulating the retail investment markets.The article points to evidence that the reforms improved the quality of financial advice in a practical sense and has helped build consumer confidence in financial advisers. The analysis of this article is confined to the legislative text on the suitability rule and its interpretation by the UK courts.
Discipline
Banking and Finance Law | European Law
Research Areas
Asian and Comparative Legal Systems
Publication
Capital Markets Law Journal
Volume
16
Issue
4
First Page
393
Last Page
413
ISSN
1750-7219
Identifier
10.1093/cmlj/kmab026
Publisher
Oxford University Press
Citation
HE, Weiping and LIU, Han-wei.
Rebuilding trust: Regulation of financial advisers in the UK. (2021). Capital Markets Law Journal. 16, (4), 393-413.
Available at: https://ink.library.smu.edu.sg/sol_research/4399
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1093/cmlj/kmab026