As international financial markets have become more complex, so has the regulatory system which oversees them. The Basel Committee is just one of a plethora of international bodies and groupings which now set standards for financial activity around the world, in the interests of protecting savers and investors and maintaining financial stability. These groupings, and their decisions, have a major impact on markets in developed and developing countries, and on competition between financial firms. Yet their workings are shrouded in mystery, and their legitimacy is uncertain. Here, for the first time, two men who have worked within the system describe its origins and development in clear and accessible terms. Howard Davies was the first Chairman of the UK′s Financial Services Authority, the single regulator for the whole of Britain′s financial sector. David Green was Head of International Policy at the FSA, after spending thirty years in the Bank of England, and has been closely associated with the development of the current European regulatory arrangements. Now with a revised and updated introduction, which catalogues the changes made since the credit crisis erupted, this guide to the international system will be invaluable for regulators, financial market practitioners and for students of the global financial system, wherever they are located. The book shows how the system has been challenged by new financial instruments and by new types of institutions such as hedge funds and private equity. Furthermore, the growth in importance of major developing countries, who were excluded for far too long from the key decision–making for a has led to a major overhaul. The guide is essential reading for all those interested in the development of financial markets and the way they are regulated. The revised version is only available in paperback.
Howard Davies is a Chair of the British Government's Airport Policy Review and of Phoenix insurance group. He also is a Professor of Practice at the French School of Political Science in Paris (Sciences Po). He was the Director of the London School of Economics and Political Science from 2003 until May 2011. Prior to this appointment he was chairman of the UK Financial Services Authority from 1997 to 2003.
From 1995 to 1997 he was Deputy Governor of the Bank of England, after three years as the Director General of the Confederation of British Industry. Earlier in his career he worked in the Foreign and Commonwealth Office, the Treasury, Mckinsey and Co, where he spent five years, and as Controller of the Audit Commission.
He has been an independent Director of Morgan Stanley Inc since 2004, and chairs the Risk Committee. He also chairs the Risk Committee at Prudential PLC, whose board he joined in 2010. He is a member of the Regulatory and Compliance Advisory Board of Millennium LLC, a New York-based hedge fund. He has also been a member of the International Advisory Council of the China Banking Regulatory Commission since 2003 and, from 2012, is Chairman of the International Advisory Council of the China Securities Regulatory Commission.
In 2006 he edited and introduced The Chancellor's Tales (Polity Press) on British economic policy from 1975 to 2000. In 2008 he jointly authored Global Financial Regulation: The Essential Guide (Polity Press) with David Green. Banking on the Future: The Fall and Rise of Central Banking, on central banks, also by Davies and Green, was published in April 2010 by Princeton University Press. His latest book, 'The Financial Crisis: Who is to blame?' was published by Polity Press in July 2010.