The FSA meets its demise
(17 June 2010 – UK) Regulatory powers of the British financial system will be handed over to the Bank of England in an effort to prevent a repeat of the financial crisis, as the FSA meets its demise.
Britain's Chancellor of the Exchequer, George Osborne, announced the changes at his first Mansion House dinner last night.
The changes to the financial system will be the biggest in city regulation since 1997, effectively breaking up the current Financial Services Authority (FSA).
Mr Osborne said, when addressing the house, that he could confirm the government would be abolishing the tripartite regime and the FSA would cease to exist in its current form.
A new prudential regulator will be created, which will operate as a subsidiary of the Bank of England, Mr Osborne added.
Mr Osborne told the House of Commons that Labour's tripartite system of financial regulation had failed spectacularly in its mission to ensure stability in the financial markets.
Indeed, British taxpayers funded the largest bank bailout in the world, Mr Osborne highlighted.
The chancellor added that a new commission would be established to look into whether Britain's big banks should be split into two separate retail and investment arms.
The changes to the financial system will be the biggest in city regulation since 1997, effectively breaking up the current Financial Services Authority (FSA).
Mr Osborne said, when addressing the house, that he could confirm the government would be abolishing the tripartite regime and the FSA would cease to exist in its current form.
A new prudential regulator will be created, which will operate as a subsidiary of the Bank of England, Mr Osborne added.
Mr Osborne told the House of Commons that Labour's tripartite system of financial regulation had failed spectacularly in its mission to ensure stability in the financial markets.
Indeed, British taxpayers funded the largest bank bailout in the world, Mr Osborne highlighted.
The chancellor added that a new commission would be established to look into whether Britain's big banks should be split into two separate retail and investment arms.
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