Massive changes are afoot to UK financial regulation. On Thursday I’m one of those being examined by the rather scary, Parliamentary, ‘Joint Committee on the draft Financial Services Bill’, on the impact new regulation will have on consumers. And I’d love your views before I go…
It’s quite simple really…the Bank Of England’s new FPC (separate to the MPC), will oversee macro-prudentiality; of which the PRA will be a subsidiary. It’ll have new veto powers over the new FCA, which replaces the FSA. If the FCA spots a competition issue it can look into it, but must then refer it to the new body, which isn’t the OFT as it’s being disbanded. This clarity can surely only aid consumers?
OK, so they’ve already made a pigs ear of keeping it simple, yet the hope is the new ‘Financial Conduct Authority’ which replaces some of what the FSA currently does, will at least have more powers to help. It’s currently scheduled to be able to intervene more easily and have a lower threshold of what counts as consumer detriment than the current system (though economic stability and competition override that).
Your views wanted
Now, I’m aware this is a complex subject – so I won’t give too much detail about what’s happening, as I’m assuming those who do respond will already know something about the proposals (see official info about proposals).
Yet as I’m giving evidence in front of the likes of David Laws MP, Peter Lilley MP and Baroness Drake then I’d welcome as many views as I can get before I go.
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