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Independent Scotland would create its own FCA, FOS and FSCS

Scotland would ditch the Financial Conduct Authority and set up its own conduct regulator if its citizens vote in favour of independence next year.

The Scottish government has today published a white paper setting out the implications of a “yes” vote in September 2014.

It says an independent Scotland would look to retain sterling as a currency, with the Bank of England continuing to monitor the UK financial system as a whole.

A new Scottish financial conduct regulator would assume the key responsibilities of the FCA and would look to align its rules “to retain a broadly integrated market across the Sterling Area”. 

An independent Scotland would also set up its own Financial Ombudsman Service and Money Advice Service, as well as establishing its own Pensions Regulator.

“Much of this landscape is fragmented at the moment, and there is significant scope to deliver this more efficiently in an independent Scotland offering a real opportunity to deliver better outcomes for consumers,” the paper says. 

It says its own financial compensation scheme would continue to be funded by an industry levy with a Scottish government seeing ”merit” in a jointly operated and co-ordinated scheme across the Sterling Area for “key aspects of compensation”. 

The paper says the new regulator would work on a “closely harmonised basis” with UK regulators, including the application of single rulebooks and supervisory handbooks.

It says: “For the first aspect of financial regulation – financial stability – in light of reforms to improve the resilience of the global financial sector, the clear trend toward cross-border co-ordination and with significant financial firms operating across Scotland and the UK, financial stability policy will be conducted on a consistent basis across the sterling area.

“The second aspect of financial regulation covers the monitoring of conduct and behaviour of firms in local markets, to ensure that financial markets function well, with choice and competition, whilst protecting consumers.

“It is proposed that this aspect of financial regulation will be discharged by a Scottish regulator which will assume the key responsibilities of the UK Financial Conduct Authority in Scotland.”

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Comments

There are 21 comments at the moment, we would love to hear your opinion too.

  1. Excellent! Fewer firms under the FCAs rules will mean lower levies! That’s right, isn’t it…?

  2. I smile at the prospect of Scottish adviser firms been able to ‘park’ their previous advice liabilities in England! come to mention it, English firms also been able to ‘park’ their liabilities in England and register in Scotland! #unintendedconsequences

    Madness, they call it Madness… it’ll never happen.

  3. I’m with you Keith! Haha!

    If Scotland go independent they should be cut off 100% from everything otherwise it’s not independent it’s dependent.

  4. Great news. How do we convince all of the spread betting firms, penny share traders and dodgy life settlement funds masquerading as intermediaries to set up head offices in Edinburgh, Glasgow or Aberdeen?

  5. I think Salmond is having a laugh. He knows deep down this is going to fail but all he is trying to do is use independence as a negotiating ploy for more powers. As for Scotland having it’s own Financial Services regulator, could it get any more ludicrous?……how are property prices in Carlisle?

  6. I wonder if today’s document has fully costed this and all the myriad of other regulatory and quasi political institutions they will need to duplicate ?The Scottish masses have no understanding of this and are being duped by Salmond , but I believe there are enough canny ones to make sure it never happens !

  7. The more i read of the SNP’s vision of a independent Scotland the more it looks like they want to cherry pick. I agree with Tom, if they want independence then they have to go it alone.

    The sooner Scottish voters decline independence the sooner toad of toad hall can go back under his rock.

  8. Let our Scottish friends have our FCA, FOS & FSCS we don’t mind it will save them “creating” their own !!

  9. So two lots of fee’s if you wish to arrange mortgages/insurance on both sides of the border?? Not just for brokers but also for banks and building societies?? I can see a few sticking two fingers up and just sticking to lending/saving in England and Wales.

  10. Does this mean all our clients who have policies with Scottish Widows, Scottish Life, Scottish Equitable et al, would have offshore investments?

    Where would the Corporation Tax go?

    What about the tax on life funds who would get that?

    Will anyone born in Scotalnd now have to have a work Visa? I believe the EU has said that they wouldn’t get automatic membership so there’s no free movement of labour from a non member state.

  11. So now that Salmond has set out a full list of his assumptions that rest of UK will just roll over & let him have everything his way including continued use of Sterling which is set in law that by leaving UK they cannot continue to use, if the scots get bribed by all these false promises & vote for Independence the rest of UK should get right to vote on what we allow them to keep or remain in & im sure that will be very little, Independence is Independence !

  12. And another thing!

    We don’t want any of those Scots living down here leeching off our benefits system.

    Instead of HS2 we could spend Billions and provide employment by re-building Hadrians Wall. Put our armed forces to good use by guarding it and send all those born in Scotland back North thereby solving England and Wales unemployment problem over night. (That includes Tony, Gordon & IDS)

    It’s so simple its Genius!!!!

  13. Think I will move to Scotland and apply for a job in the regulator. Will quite happily go part time adviser at home though and practice one week a month over here. Awesome.

  14. Christopher Petrie 26th November 2013 at 4:58 pm

    Ireland left the United Kingdom 80 years ago, and don’t seem to want to come back again. They seem quite happy to run their own affairs.

    And they don’t have any oil or gas either……..

  15. @Christopher Petrie

    For the first 50 years they were a third world country. They are now one of the PIGS. Done a lot for them hasn’t it.

  16. Sounds like double the parasites and double the costs to me which is OK if the Scots can fund their own welfare system & regulatory system without UK subsidy. If the UK’s debt was allocated in proportion to population, Scotland would take on more than £100bn if it became independent – so says Professor David Bell from Stirling University Management School. The populations of Scotland is £5m so that’s one hell of a debt per capita. So lets make it clear that independence works both ways: No rights without responsibilities, “no taxation without representation” and also “no representation without taxation”. If the Scots want independence they can have it debts and all.

  17. Sorry to see such ignorance and bile being displayed in so many of these comments. Just like reading the Daily Mail comments sections. As so many Scottish firms already contribute to the various compensation schemes it makes a lot of sense to continue that. On the other hand if we ditch regulators like the FCA we can introduce simpler systems, save a fortune in London salaries and real estate and create jobs in Scotland.

  18. ” an independent Scotland would look to retain sterling as a currency, with the Bank of England continuing to monitor the UK financial system as a whole”

    But the UK would not be a “whole”.
    Nor would it be United.

    Home Rule for Pimlico!

  19. What aaboiut alkmnthose bank of England pension liabilities offloaded to the PIA and FSA and then leftr behind with staff going to the PRA and back to the Bof E. who will be left with the staff pension kianikitea this time?
    If the Scots want to leave, just waice bye, Those who want to stay, and we can just rebuild Hadrian’s Wall which was a tax barrier more than a military one I believe anyway!

  20. One advantage would be that, like Ireland, they could design their ombudsman service to work within a 6 year longstop. I’ll have a wee dram to that.

  21. Jut a thought in passing:

    It would not surprise me in the least if independence for those north of the border eventually came about as a result of votes cast by those south of the border.

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