In today’s Budget Chancellor Alistair Darling said the Government will be publishing a paper on financial regulation which will outline recommendations for wide ranging reform.
The paper will propose action on the reform of corporate governance and the remuneration of banks to avoid undue risk taking.
Darling said this would be “to improve the regulation of capital and liquidity of banks, to increase transparency and to achieve a single set of accounting rules so we can see the risks that banks are taking as well as to regulate all important institutions including hedge funds.”
The report will also propose action to reduce the impact of the failure of financial firms.
Darling said: “It will protect and support consumers, improve efficiency and competition in the financial markets as well as strengthening the regulator’s powers.”