UK FINANCIAL SECTORS
he rules and regulations are ‘firmly’ fixed in place for financial and commercial institutions.
Those in the UK are among the most stringent and powerful commercial platforms in the world.
Unsurprisingly, our regulatory system is ‘copied’ by many developing areas of the world. Even if they do not always admit to it.
The UK is a good place to do business, though sometimes seemingly tied up in too much red tape.
But, for some smaller and larger companies, this often proves to be time consuming. It often leads to an inefficient use of resources.
Banking and Financial Regulation
UK financial regulation subjects organisations through a practice of supervision and directive guidelines. Enterprise is very restrictive in the United Kingdom. This helps to safeguard the economic system’s integrity.
All monetary institutions are subject to a multitude of different regulatory bodies. The Financial Services Act sits at the forefront.
Fiscal regulation laws govern and dictate the operating procedures of those involved in selling Financial Services. That includes banks, insurance, brokers, mortgages, investments, and many other ‘products’.
There have been several high profile cases of financial fraud, and mismanagement of clients’ money and other assets. The banking system has since undergone drastic, well-overdue, changes. The new accountability rules for bankers relate most to what they can do – or say.
Noticeable changes occurred in the industry since regulation changes in 2013. The UK banking system is ‘clearly’ more transparent and accountable to you. After all – you are the existing or potential customer.
Business and Finance Rules of Thumb
Rules of thumb tend to be a clever guideline rather than an accurate value. An example could be the standard rule of thumb for personal savings is currently 10%. Whereas, ambitious business entrepreneurs aiming to escape the system suggest increasing the norm to a whopping 20% savings.
Even so, rules of thumb are typically associated with numbers. These non-numeric guidelines could simplify your long-term approach to managing your money and improving your financial stability.
- Pay yourself and set your savings aside each month.
- Retirement savings are for you to use when you retire – not before.
- Do not cheat on Income Tax payments but claim for all your entitlements.
- It is not smart to co-sign someone else’s loan.
- Never buy on credit what you would not pay cash for.
- Paying interest on items which lose value should be avoided.
Business and Commerce Regulations
Setting up in business, and then running a company in the UK, is not as easy or straightforward as it once was.
The government – via its civil service – seem determined to tie small and large businesses in swathes of red tape. The ‘Red Tape Removal’ is a regular election promise. But, little gets done to reduce, or even halt the strangulation of meaningless and unnecessary regulation.
There is no better example than the dreaded Health and Safety Acts. Fact: they reduce many accidents – and deaths. But, the new laws have also been a pot of gold for those who claim for injuries. Sometimes falsely, and egged on by a new breed of solicitor, it often results in a long and expensive court case.
ALSO IN THIS SECTION
Finance and Support for Business
BEIS: The department for Business, Energy and Industrial Strategy is trying to build an economy that works for everyone. They can help you find government-backed support and finance for your business.
Software for Filing Company Documents
FILE ELECTRONICALLY: You can use electronic software to file and manage your company accounts, returns, and tax accounts. Search online to find company filing software recognised by Companies House.