View more on these topics

Turner Review: New intrusive style will lead to fee hike for banks

The FSA has revealed its new intrusive regulation of the banking sector will lead to a hike in its budget and lead to an increase in fees charged to firms.

In the Turner review, published today, the FSA has also unveiled more details of this new intrusive style of regulation.

This includes a significant increase in the resources devoted to the supervision of high impact firms and in particular complex banks.

There will be an increase in the frequency of Arrow visits from a maximum of every three years to a maximum of every two years.

The report says there will be a shift in supervisory style leading to a greater willingness to vary capital and liquidity requirements or to intervene
more directly if the regulator perceives undue risk.

There will also be greater focus on remuneration policies, and the integration of oversight of remuneration policies into overall assessments of risk.

The report reads: “There is also a strong case for bank regulators such as the FSA to be far more involved than in the past in the review and comparison of accounting approaches to fair value estimates and loan impairment provisions. Over the last six months the FSA has been intensively involved in the analysis of bank balance sheets to inform decisions on bank recapitalisations and the Asset Protection Scheme.

“This analysis has revealed significant differences in the marks used by different banks to value similar trading book assets and significant differences in the allocation of assets between trading and banking books.The FSA has not in the past monitored these accounting policies as closely as now seems appropriate.”


FSA Turner-round

This morning’s press conference with Adair Turner lacked frantic media scrums, flashing camera bulbs and even hearty heckling from reporters about the FSA’s failings.

MPs should look again at evidence

I sent my first evidence to the Treasury select committee on February 6. The following Tuesday, February 10, Lord Stevenson, the ex-HBOS chairman, and Andy Hornby, the former chief executive, were cross-examined by the committee about my evidence and denied my allegations.

Social climbing

As the Royal Mail continues to ponder how to compete with email, a new communication phenomenon will further add to their woes. According to a study by Nielsen, email communications have now been overtaken in popularity by social networking websites.

Canada Life annual IHT survey results

75% of wealthy unaware of new residence nil rate band IHT allowance Just 4% were aware the new allowance will be up to £175,000 per individual Lack of awareness of IHT rules means families risk paying a bigger bill than they need 83% think the current inheritance tax rules are far too complex A remarkable […]


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