Global Positioning for Financial Services Essay Example | Topics and Well Written Essays - 250 words

Global Positioning for Financial Services - Essay Example In investment banking, investors were taxed on investment income but retail banking customers were taxed on savings (BROWN, 2007). The circular flow of income describes the reciprocal circulation of income between producers and consumers. The interdependent entities are producers, referred to as firms, and consumers referred to as households. These entities provide each other with factors, thus facilitating the flow of income. The firms produce and supply to consumers. The consumers intend to use the goods to meet their wants (RANDALL & MILLWOOD, 1983).Consumers’ expenditure is the income on the firms’ side. On the other hand, households provide the firms with factors of production and in return, they receive the reward which is income on their part. The structure for financial services regulation in the United Kingdom changed tremendously 1st April 2013. The then banking regulator, the Financial Services Authority was abolished and replaced with two institutions. First, the Financial Conduct Authority; mandated with watching the behavioral conduct, mainly regulating conduct related to the marketing of financial products. Secondly, the Prudential Regulation Authority; its mandate is to ensure the stability of financial services. The Bank of England was empowered to have direct supervision on the entire banking system through one of its part, Financial Policy committee (JOHNSON, 2000).