A new approach to financial regulation: building a stronger system

Front Cover
The Stationery Office, Feb 17, 2011 - Business & Economics - 135 pages
This document presents more detailed proposals for financial regulation following on from the consultation paper "A new approach to financial regulation: judgment, focus and stability" (July 2010, Cm. 7874, ISBN 9780101787420) and continuing policy development by the Treasury, Bank of England and Financial Services Authority. The Government's reforms focus on three key institutional changes. First, a new Financial Policy Committee (FPC) will be established in the Bank of England, with responsibility for 'macro-prudential' regulation, or regulation of stability and resilience of the financial system as a whole. Second, 'micro-prudential' (firm-specific) regulation of financial institutions that manage significant risks on their balance sheets will be carried out by an operationally independent subsidiary of the Bank of England, the Prudential Regulation Authority (PRA). Thirdly, responsibility for conduct of business regulation will be transferred to a new specialist regulator, the Financial Conduct Authority (FCA). Individual chapters cover: Bank of England and Financial Policy Committee; Prudential Regulation Authority; Financial Conduct Authority; regulatory process and co-ordination; compensation, dispute resolution and financial education; European and international issues; next steps; how to respond; impact assessment. The chapters contain significant detail on how the legislative framework will be constructed in order to deliver the Governments' priorities for the framework. The Government will consult on these proposals with a view to publishing a draft bill in spring 2011.
 

What people are saying - Write a review

We haven't found any reviews in the usual places.

Contents

Introduction
3
Bank of England and Financial Policy Committee
15
Prudential Regulation Authority
45
Financial Conduct Authority
59
Regulatory processes and coordination
81
Compensation dispute resolution and financial education
99
European and international issues
105
Next steps
113
Annex A How to respond
115
Annex B Impact assessment
117
Copyright

Common terms and phrases