The Government has responded to an IFA petition criticising the senior management of the FSA, suggesting the new regulatory system will ensure firms are “responsibly managed and regulated”.
The comments come in response to the Independent Financial Advisors Political Action Committee’s petition to Gordon Brown, launched last September, calling for a change to the senior management at the FSA.
The petition received 550 signatures on its first day and closed on June 6 with 2,701 signatures.
West Riding Personal Financial Solutions director Neil Liversidge, who founded IFAPAC, said on the petition: “The FSA’s current policies will prove disastrous to both businesses and consumers alike and we have no confidence in the FSA to regulate either competently or fairly under its current management.”
The Government has now responded, saying that the tripartite system failed to monitor the financial system as a whole and there was a lack of coordination between the roles of the Bank of England, the FSA and the Treasury. It adds that the FSA’s approach to micro-prudential regulation was flawed.
The Government says as well as scrapping the FSA in favour of the Financial Policy Committee, Prudential Regulatory Authority and Consumer Protection and Markets Authority, it will keep a close eye on firms.
It says: “These changes will ensure that financial firms are responsibly managed and regulated. The greater stability and resilience of the financial services industry will not only benefit the sector itself, but also the wider economy.
“The reforms will also ensure that the conduct of firms, and with it the interests of consumers and participants in our financial markets, are placed at the heart of the regulatory system and given the priority they deserve.”