Government publishes Financial Services Bill
The Government has today published legislation aimed at strengthening financial regulation in the UK.
According to Financial Secretary to the Treasury, Mark Hoban, the Financial Services Bill sets out a “clear, coherent and comprehensive regulatory framework” that should help mitigate against future risks to stability.
In brief the Bill:
1. Gives the Bank of England responsibility for protecting and enhancing financial stability, bringing together macro and micro prudential regulation.
2. Abolishes the Financial Services Authority 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.
3. Empowers authorities to look beyond “tick-box” compliance and fosters a regulatory culture of judgment, expertise and proactive supervision.
While the new framework is in line with the model put forward by the Chancellor in 2010, it contains additional policy proposals including measures to:
1. 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.
2. Enable the transfer of responsibility for regulating consumer credit to the Financial Conduct Authority to better protect consumers.
A Second Reading of the Bill is provisionally scheduled to take place on 6th February, and Royal Assent is sought by the end of the year.
Category: Banking News, Financial Services Authority
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