PRICE SENSITIVE INFORMATION AND SELF‐REGULATION BY UK COMPANIES AND FINANCIAL INSTITUTIONS — PART II

Abstract

This paper, which is published in two parts, is concerned with ‘behind the scenes’ self‐regulation by companies and financial institutions (FIs) relative to the guidelines on ‘Dissemination of price sensitive information’ outlined in a Stock Exchange (SE) report in February 1994. This paper therefore, investigates a private form of self‐regulation outside the more public form overseen by the Securities and Investments Board (SIB). The common focal points for these private self‐regulation processes are close cooperative relationships between FIs and a large proportion of their portfolio companies. In Part I, published in the previous issue of the Journal of Financial Regulation and Compliance, these relationships were employed as a common base around which to illustrate self‐regulatory processes at the level of individual companies. Part II looks at self‐regulation by UK FIs and the connections between the legal, self‐regulatory and social control mechanisms are explored and new directions for research and regulation proposed.