View more on these topics

Osborne to set out bank reform plans

Chancellor George Osborne will set out plans for structural reform of the banking sector in line with the recommendations of the Independent Commission on Banking in his Mansion House speech next month.

The Treasury is expected to publish a white paper before Osborne’s speech on June 14.

The ICB’s final report, published in September, calls for the retail operations of universal banks to be ringfenced from their investment arms and be made to hold 10 per cent core tier one capital, more than the 7 per cent set out globally in Basel III. It also calls for banks as a whole to have a loss-absorbing capacity of between 17 and 20 per cent.

Treasury sources say the white paper will seek to push ahead with the ICB’s recommendation of “depositor preference”, which would mean in the event of a bank failure, retail customers will get their money back ahead of unsecured creditors and those who lend money to banks.

The white paper will set out details on how the ringfence will work as well as proposals for banks to be able to more easily absorb losses. In a bid to boost competition in banking, it will also propose moves to make it easier for customers to switch accounts.

Full draft legislation is expected by the autumn, with the Government committed to passing all legislation by the end of this Parliament in 2015. The reforms are set to be introduced in 2019 alongside new capital requirements for banks set out in Basel III.

A Treasury spokesman says: “These far-reaching reforms will help solve the dilemma of how Britain can be home to one of the world’s leading financial centres without exposing British taxpayers to the massive costs of banks failing.”

Recommended

David Copland appointed director of mortgage services at LSL

David Copland, chief executive of Pink, has been appointed as director of mortgage services at LSL’s financial services division. Copland will now have overall responsibility for LSL’s mortgage lender relationships, development of mortgage services across the entire financial services business, mortgage product development and the strategic direction of LSL’s directly authorised distribution. As Copland moves […]

14

SJP: Advisers want to join as restricted realisation dawns

St James’s Place chief executive David Bellamy says more advisers are approaching the company to join as they realise they are likely to be classed as restricted after the RDR. Speaking to Money Marketing following the publication of SJP’s first-quarter results last week, Bellamy says he is pleased with the momentum the company has seen […]

1

Former pensions minister Wicks calls for ‘social insurance system’

The welfare state should be overhauled and replaced with a social insurance system delivered through individual accounts which modernise the contributory principle and restore confidence in the system, according to former pensions minister Malcolm Wicks. In a paper published today and based on speech he gave at the Institute for Public Policy Research in April, […]

FSA fines Martin Currie £3.5m

The Financial Services Authority has fined Martin Currie Investment Management and Martin Currie Inc £3.5m for failing to manage a conflict of interest between two of its clients. The investment firm has also been fined £5.15m by the Securities and Exchanges Commission in the US, bringing the total fine to £8.65m. The FSA says the […]

Budget summary – March 2016

This week’s Budget looked as if it would be a difficult one for the Chancellor, with disappointing economic numbers and the need to avoid ruffling feathers ahead of June’s in/out referendum. Nevertheless, Mr Osborne did spring a few surprises, including some tax reductions. So how does this budget affect you? If you are – or […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com