HM Treasury: Government publishes Financial Services Bill
27 January 2012
The UK Government has published legislation which will fundamentally transform and strengthen financial regulation in the United Kingdom. The new regime sets out a clear, coherent and comprehensive regulatory framework, which will help to mitigate against future risks to stability.
The Bill:
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gives the Bank of England responsibility for protecting and enhancing financial stability, bringing together macro- and micro-prudential regulation;
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abolishes the Financial Services Authority (FSA) and creates a strengthened regulatory architecture consisting of the Financial Policy Committee, the Prudential Regulation Authority and the Financial Conduct Authority, also providing them each with clarity of responsibility and the necessary powers to ensure the stability of the financial sector and the protection of consumers; and
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empowers authorities to look beyond ‘tick-box’ compliance and fosters a regulatory culture of judgement, expertise and proactive supervision.
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has been shaped by extensive consultation with both stakeholders and Parliament and, while the fundamental elements of the new framework are in line with the model put forward by the Chancellor in 2010, contains a number of refined policy proposals, including measures to:
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legislate for a new crisis management regime, providing greater clarity and accountability to protect the taxpayer during times of crisis by providing the Chancellor with new powers over the Bank of England where public money is at risk; and
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enable the transfer of responsibility for regulating consumer credit to the Financial Conduct Authority to protect consumers better.
Full information
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