Treasury financial secretary Mark Hoban has clarified that criminal powers to investigate white collar crime will stay with the FSA and later the Financial Conduct Authority, rather than be transferred to a new body.
The Treasury said last July it would consider transferring responsibility for prosecuting offences such as insider dealing to a new Economic Crime Agency, but in February decided to transfer the FSA’s criminal enforcement powers to the new FCA.
Enforcement powers could be transferred to a new Home Office agency called the National Crime Agency, according to documents leaked in May.
But at a Which? Conference on financial services reform in London this week, Hoban said: “We had considered whether the FSA’s prosecution powers should be part of an Economic Crime Agency. When we did some consultation on this one of the challenges we had was the separation of the FSA’s criminal powers from its civil powers. We recognised there is a chance of creating more duplication by separating those powers out, so we are leaving criminal powers with the FSA and the FCA for the moment.”