This unique and authoritative study of the investment management business focuses on the use of capital requirements for investment managers as a means of investor protection. Commissioned by the Investment Management Regulatory Organization and drawing on extensive discussions with investment managers themselves, it provides an account of this burgeoning sector that is both comprehensive in its coverage and penetrating in its analysis. The authors review the way in which the investment management business is organized and its inherent risks; they examine the causes and incidence of market failures as well as the dangers to investors through mismanagement and malpractice. The book includes an extensive treatment of fraud, with a full listing of fraud cases in the UK since the early 1970s. The report concludes with a summary of the evidence on the nature and scale of the risks faced by investors and recommendations for appropriate forms of protection; and, on the basis of existing regulatory structures in the UK and USA, sets out a proposed structure in accordance with the thrust of the authors' analysis. While specific in its coverage, much of the argument presented here is closely applicable to other financial sectors in which regulation is a crucial issue; and it is especially pertinent to current debates on financial regulation in the run-up to the completion of the European internal market in 1992.

'it deals with a subject of wide concern and is impressively logical' Barry Riley, Financial Times
'it deals with a subject of wide concern and is impressively logical' Barry Riley, Financial Times
'In spite of the less than riveting subject matter this is a thorough, well written book, which is surprisingly easy to read ... it contains a number of helpful summaries which make it a useful reference work for students and practitioners.' Gavin Gemmell, The Accountant's Magazine
'For those with little time the introduction is crisp and clear. For those with more time the analysis, evidence and arguments are developed in a logical manner.' Richard Macve, Aberystwyth University College, Accounting and Business Research
'Their report is to be highly recommended.' C.A.E. Goodhart, London School of Economics, Economica, 57, November 1990
'the collation of data and information is useful' D.H. Gowland, Economic Journal (December 1990)