Discuss the U.S. Legal System’s response to the Financial Service Act 1996 of the UK. Provide detailed information for this discussion.
Topic 3 Discussion 1
U.S. Legal System responds to the Financial Services Act of 1996 of the United Kingdom
The Financial Services Act 1996, is an act that was introduced by the United Kingdom Parliament in order to establish a proper financial setup within the nation. Thus, this is mainly introduced in order to implement a designed financial framework by the UK Financial Service Authority. Therefore, U.S Legal System has responded to the Financial Service Act of 1996, in order to overcome any financial crisis present or in the future. Hence, to overcome this issue, the United States has responded to the Financial Service Act. While this act assisted in making a re-formation based on the regulation made on the present Financial System. Yes, I agree with the response regarding how the US legal system has responded. The main work of the Financial service act is to set the standard for the financial firm and to monitor the conduct of each individual firm. The US Legal system has responded in a positive way toward the financial service because they know that it is the best method and can be useful to the US in the long run (Bhattarai et al. 2020). It can be said that the financial service act is well known for its usefulness to the citizen and to monitor each work properly of the country.
Therefore, the rationale behind the United States’ response to the Financial Service Act 1996 is due to the system changes toward financial services within the society. Thus, the United States Legal System responded to the Financial Service Act, of 1996, because this even helped the United States to modify its business and make changes in the financial structure of the business. Apart from this, the United States legal system responded to the Financial Service Act, because, this gave a smart way for Americans to improve their business, while they were even inspired by the tricks the United Kingdom takes whenever they face financial crisis (Chitimira 2020). Overall, the Financial Service Act helps to bring shares to the banks and bring an overall profit to all the taxpayers, which is easily acknowledged. It can be said that it is important for the US as these changes will bring new criteria for the country and its people. Thus, through this system, the United States could entitle to a good regime within its financial activity in order to deal with different financial products, while this has helped them to develop to provide financial advice and assisted in developing a financial product.
Bhattarai, C. R., Kwong, C. C., & Tasavori, M. (2019). Market orientation, market disruptiveness capability and social enterprise performance: An empirical study from the United Kingdom. Journal of Business Research, 96, 47-60.
Chitimira, H. (2020). Historical Aspects of the Statutory Regulation of Financial Inclusion for the Poor and Low-Income Earners in South Africa1. Acta Universitatis Danubius. Œconomica, 16(5), 269-284.