Financial regulation, law and compliance Essay Example | Topics and Well Written Essays - 3000 words

Financial regulation, law and compliance - Essay Example The paper will also discuss why trust is considered inevitable in the financial services industry. Finally, different methods that have been put in place/are proposed to restore trust will be evaluated. A healthy financial system is an integral part of a healthy economy as it helps the business sector to invest and grow; to deal with daily transactions and manage risks; and to underpin activities in every segment of the society. According to the Confederation of British Industry, the UK’s premier business lobbying organisation, the UK financial services industry plays a significant role in enhancing the country’s business growth and overall economic development (PWC, 2012). The products and services offered by this industry represent a crucial part of the UK economy and constitute one of the country’s few world-class sectors. A well performing financial services sector is very important in the modern economy to develop a competitive and resilient financial system which is free from taxpayer support and is co-ordinated globally (Ibid). The UK financial services industry employed nearly 1.2 million people in the 3rd quarter of 2012, representing approximately 4 p ercent of the UK workforce. In the financial year ending 31st March 2012, the industry paid and estimated  £63bn in taxes, accounting for around 11.6% of the total government tax receipts in UK (Ibid). Despite the crucial role that the UK financial services industry plays in the growth of the country’ economy, consumer trust and confidence in the UK financial services industry is very low currently (BBC News, 2014). According to an annual survey conducted by the public relations firm Edelman, â€Å"less than half of the public trust banks do what is right, making financial services the world’s least-trusted industry for the second year in a row† (The financial brand, 2014). Since the global financial crisis 2008-09, the consumers’ trust and confidence in the banks’ ability to do