CPMA will 'play second fiddle' to PRA
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Regulatory consultant Bovill says the Consumer Protection and Markets Authority may struggle to recruit skilled staff because the Prudential Regulation Authority will be seen as the predominant regulator.
In June, the Government set out plans to scrap the FSA and give responsibility for prudential regulation to the PRA and conduct of business regulation to the CPMA.
Bovill chief executive Ben Blackett-Ord says there is a danger that the CPMA will end up deferring to the seemingly more important PRA.
He says: “It is clear that the PRA is going to be the pre-eminent body and that it will be very powerful.
“There is potentially a risk that the CPMA will play second fiddle to the PRA and if this is how it is seen then it may be difficult for the CPMA to secure the resources needed to recruit the right people.”
But Lansons public affair and regulatory consulting director Richard Hobbs says the impression that the PRA will be more powerful is only due to the attention it is currently receiving and it will only take precedence on issues of systemic risk.
He says: “The changes in regulatory content and style being envisaged are far greater for the PRA than for the CPMA.
“The PRA will have to deal with Solvency II and Basel III, which are significant regulatory developments. By contrast, conduct regulation is not changing much at all.”
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