Legal
The legal environment is about common laws that businesses need to comply with. The UK Government establishes common laws based on a common law system. In Wales however the Senedd has the power to create laws within their devolved areas whilst the UK Government is responsible for other legislation.
When the UK was a member of the European Union, some laws and regulations originated from the EU and a substantial number of those EU laws are still in force.
We have already mentioned the Partnership Act as a piece of legislation that affects some businesses. There are substantial pieces of legislation that can have a direct impact on businesses. Click on the different areas of legislation for more details:
Companies
The Companies Act 2006 is the primary source of legislation relating to companies in the United Kingdom. The legislation governs how a company is managed, run, and funded.
Charities
The Charities Act 2011 defines the criteria for being a charity, how a charity can be set up and when registration with the Charity Commission is required. The Charities Act 2022 amends the 2011 Act to give charities greater powers to spend money, among other elements.
Competition
The Competition Act 1998 aims to prevent businesses from:
- - creating agreements between enterprises that could prevent, limit or hinder competition in the UK.
- - abusing a dominating position in the market that could have an impact in the UK.
Corporate Governance
Corporate governance is about what a company's board does and how it sets the company's values.
It is based on the basic principles of good management: accountability, transparency, accuracy, and a focus on the entity's sustainable success over the long term. The code applies to companies on the London Stock Exchange.
Financial Services Regulation
The Financial Conduct Authority (FCA) regulates the financial services industry in the UK. Its role includes protecting consumers, keeping the industry stable, and promoting healthy competition between financial service providers.
Industry Regulators
Regulators are organisations that oversee different industries.
There are many of them. Examples include:
- - Natural Resources Wales which manages natural resources in Wales
- - Ofcom which regulates the communications industry in the UK
- - Estyn which oversees educational standards in Wales
Government Departments
The Government has a number of different departments to oversee different aspects of everyday life.