The Bill, currently before Parliament, proposes an additional statutory objective for the FSA of contributing to the protection and enhancement of the financial stability of the UK financial system.
It also proposes the establishment of the Council for Financial Stability, replacing the existing Tripartite arrangements, and changes to the Financial Services and Markets Act 2000, giving the FSA broader information-gathering powers.
The FSA’s Business Plan, published today, says the regulator welcomes the new powers, adding it will help it achieve its goals, including enhanced information-gathering exercises.
The Bill proposes removing the FSA’s public awareness objective, which will in future be the responsibility of a new consumer finance education body.
The new body’s overall running costs for 2010/11 are budgeted at £45.4m and the FSA’s annual funding requirement will be collecting £32.9m of these costs.
This represents a 38.2 per cent increase on the equivalent financial capability costs for 2009/10 of £21.7m.
The FSA says the increase is largely driven by additional staff costs and professional fees to deliver the national rollout of Money Guidance from spring 2010.
In addition to this increase, there is a £2.9m recharge from the FSA for providing services to the new consumer finance education body.
The Treasury’s contribution to the body’s overall running costs for 2010/11 is £12.5m.
The FSA states: “Although the proposed legislation will change the basis on which we undertake work to promote financial stability and introduces areas that have not traditionally been considered part of our regulatory remit, our supervisory approach and planned regulatory reform programme will continue largely unchanged.
“This is because we have already recognised our role in relation to financial stability, as set out for example in The Turner Review and our 2009/10 Business Plan.”