27/01/2012

Financial Regulator Abolished

The Government has published legislation to "fundamentally transform" financial regulation in the UK including the abolition of the Financial Services Authority. Announcing the proposals, the financial Secretary to the Treasury Mark Hoban said the new regime set out a "clear, coherent and comprehensive" framework replacing the "uncertainty and inadequacy" of the previous structure.

The Bill will give the Bank of England more responsibility and abolishes the Financial Services Authority (FSA), who are the current regulator of the UK's financial sector.

Detailing the plans, Mr Hoban said the Government would create a "strengthened regulatory architecture" consisting of the Financial Policy Committee, the Prudential Regulation Authority and the Financial Conduct Authority.

Chancellor George Osborne first suggested the closure of the FSA in 2010, accusing it of "spectacular regulatory failure" over its handling of the banking crisis.

Announcing the plans on Thursday, Mr Hoban said: "This Government has taken the necessary action to tackle the difficult and dangerous legacy left behind by the financial crisis, including a tripartite structure not fit for purpose.

"We've listened to the views of stakeholders following an unprecedented period of consultation, and are determined to strengthen the financial system in a way that safeguards financial stability and protects consumers."

(DW)

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