Trade.com, Trading212, HF Markets and More: Executive Moves of the Week

FSA to be scraped and its powers divided

by Michael Greenberg
    FSA to be scraped and its powers divided
    Join our Telegram channel

    There's a huge regulatory revolution happening the UK right now as George Osborne, UK's finance minister, is scrapping the FSA and is dividing its powers between the Bank of England, a new white-collar crime unit and a new Consumer Protection and Markets authority.

    I wonder what are the implications for retail Forex brokers.

    This is what FT reports:

    George Osborne moved to redress what he described as the spectacular regulatory failure of the City, announcing the abolition of the Financial Services Authority and a sweeping increase in the Bank of England’s powers.

    Mervyn King, the Bank’s governor, will become one of the most powerful central bankers in the world, with a new remit to prevent the build-up of risk in the financial system in addition to his monetary policy role.

    Mr King told a City audience at Mansion House on Wednesday night that his new role in enforcing financial stability was to “turn down the music when the dancing gets a little too wild”.

    Mr Osborne confirmed his plan to split up the FSA – a creation of Gordon Brown in 1997 – which the chancellor largely blames for failing to spot the approaching financial hurricane and the weakness of banks like Northern Rock.

    “The FSA became a narrow regulator, almost entirely focussed on rules-based Regulation ,” Mr Osborne said in his first Mansion House address. “No-one was controlling levels of debt and when the crunch came no-one knew who was in charge.”

    The FSA will lose much of its role to a new Consumer Protection and Markets Authority, charged with regulating the conduct of every bank and policing the City.

    There's a huge regulatory revolution happening the UK right now as George Osborne, UK's finance minister, is scrapping the FSA and is dividing its powers between the Bank of England, a new white-collar crime unit and a new Consumer Protection and Markets authority.

    I wonder what are the implications for retail Forex brokers.

    This is what FT reports:

    George Osborne moved to redress what he described as the spectacular regulatory failure of the City, announcing the abolition of the Financial Services Authority and a sweeping increase in the Bank of England’s powers.

    Mervyn King, the Bank’s governor, will become one of the most powerful central bankers in the world, with a new remit to prevent the build-up of risk in the financial system in addition to his monetary policy role.

    Mr King told a City audience at Mansion House on Wednesday night that his new role in enforcing financial stability was to “turn down the music when the dancing gets a little too wild”.

    Mr Osborne confirmed his plan to split up the FSA – a creation of Gordon Brown in 1997 – which the chancellor largely blames for failing to spot the approaching financial hurricane and the weakness of banks like Northern Rock.

    “The FSA became a narrow regulator, almost entirely focussed on rules-based Regulation ,” Mr Osborne said in his first Mansion House address. “No-one was controlling levels of debt and when the crunch came no-one knew who was in charge.”

    The FSA will lose much of its role to a new Consumer Protection and Markets Authority, charged with regulating the conduct of every bank and policing the City.

    !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}