Response to Changing Perspective of Service in Financial Services Sector

The FSA has announced several measures to improve corporate governance in the financial services sector. The objective of these regulations is to increase the confidence level of the consumers about the working of the companies, taking into account the financial and non-financial aspects.
Financial Services Act 1986 has been replaced by the Financial Services and Market Act 2000 with a view to tightening the controls on the financial services industry…
d Market Act 2000 with a view to tightening the controls on the financial services industry, and the Financial Services Authority (FSA) exercises the statutory powers derived from this act. It is increasingly felt that the business model is based on incentives and the role of the independent financial advisors from the investors’ protection point of view has become questionable.
According to FSA (2010) Retail Distribution Review (RDR), launched in 2006 aims to address the problems inherent in the retail investment market, and is expected to be implemented by 2012 for regulating the sale of retail financial services such as life assurance, pensions, long term savings, and fund management, and it has a profound impact on the operations of the bigger players in the industry like Aviva.
Aviva is the biggest insurance group in the UK and it is the world’s sixth largest company in the insurance industry with market leadership in general insurance, fire insurance, pension, long term savings and fund management with worldwide operations.
The regulatory issues are multifarious and as diversified as the industry.&nbsp. &nbsp.