Following the Chancellor's June Mansion House speech, the
Treasury has published a consultation setting out in more detail
the Government's plans for a radical overhaul of the UK's financial
The Bank of England will have responsibility for
supervising firms' prudential and systemic risk
§ Financial Policy
Committee (FPC): this new independent grouping will
operate alongside the existing Monetary Policy Committee, and will
be responsible for monitoring and limiting systemic risks to the
§ Prudential Regulatory
Authority (PRA): the new prudential regulator will act as
a subsidiary of the Bank of England. It will carry out the
prudential regulation of financial firms, including banks, building
societies and insurance companies. Hector Sants will be Chief
Conduct of Business Regulation:
§ Consumer Protection
and Markets Agency (CPMA): would deliver the second "peak"
of regulation covering conduct of business regulation including
consumer protection as well as wholesale markets. It will regulate
retail and wholesale.
Legislation will be brought before Parliament in early
2011 with a view to implementing it by 2012. In the meantime a
number of transitional measures will be undertaken.
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