View more on these topics

White paper: FSA to get new financial stability objective

The FSA is to get a new statutory objective for financial stability under banking proposals launched by the Chancellor today.

Alistair Darling said he would extend the FSA’s powers to ensure they have the rules to deal with different risks in individual banks, have tougher powers and penalties against misconduct and are able to expand regulation where necessary to new developments.

A Council for Financial Stability bringing together the FSA, Bank of England and Treasury will be set up to monitor financial stability and respond to long-term risks as they emerge.

He said an international mechanism for resolving large multi-national banks was needed and that he would be making proposals to the G20 finance ministers when they meet in London in the autumn.

But he ruled our breaking up large banks or separating retail banks from investment banks dismissing it as “a simplistic solution”.

CMS Cameron McKenna partner Simon Morris says: “This is a wholly inadequate response to the challenge facing the financial services industry. Darling’s announcement of a ‘Council for Financial Stability’ is old wine in a new skin-merely another way of expressing the existing Tripartite authority which has not delivered the stability that is needed.

“Little detail was given on how macro prudential regulation is to work or who will be in charge. This leaves the damaging FSA v Bank turf war in full flow. None of this, though, is surprising. The EU’s blueprint for financial regulation overshadows all of these proposals, and of course the Tories has said they will fundamentally change the landscape.”


ACI eyes up Keydata individuals

Arc Capital & Income says acquiring Keydata’s business would be “too big a commitment” but it would be more interested in taking on individuals of the firm.


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