View more on these topics

PRA chief admits FSA lacked objectives and accountability

PRA chief executive Andrew Bailey

Prudential Regulation Authority chief executive and Bank of England deputy governor Andrew Bailey has admitted the FSA lacked accountability and clear objectives.

Speaking at the Lansons Communications Future of Financial Services conference in London last week, Bailey said the scrapping of the FSA and the creation of the Financial Conduct Authority and the PRA represents a “profound” regulatory change.

He believes a lack of regulatory accountability was part of the reason the FSA did not succeed. He said: “The challenge we have is in getting a clear public policy objective to stick. The only way we can do that is by having very clear objectives from parliament and clear accountability to parliament. The FSA, did not succeed in that respect and did not have clear objectives.

“In a sense, the conclusion is it had too many objectives and it did not have a clear line of accountability to parliament. If you do not have those things in place then you are far more at risk of failing. That is the real lesson in terms of what worked and what did not.”

Bailey said the new regulators do have clear objectives but regulatory accountability still needs to be strengthened.

Aurora Financial Planning chartered financial planner Aj Somal says: “The FSA’s remit was too big – it bit off more than it could chew. The pressure is now on for the new regulators to deliver a more focused approach.”


Jupiter’s Merlin team cuts bond weightings

The Jupiter Merlin multi-manager team is slowly bringing its bond weightings down to the “absolute minimum” and increasing exposure to equities as they make a better inflation hedge than bonds. Jupiter multi-managers Algy Smith-Maxwell and Peter Lawery say the real rise in the cost of living is even higher than CPI and RPI rates. As […]

Barclays first quarter profits fall 25%

Barclays first quarter profits have plummeted by 25 per cent to £1.8bn as a result of the group’s restructuring programme. In its first quarter interim statement, the bank said adjusted profit was down by £609m compared to the same period last year. The decline in profits has been attributed to an increase in losses in […]

Is three a crowd?

The pension versus Isa debate has raged on and off for years. Les Cameron, head of technical at Prudential, asks if three’s a crowd.   I think the debate was arguably settled by pensions freedom when the biggest downside of pensions – limited access and poor death benefits – was fundamentally changed. Total access, albeit with […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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