- A new Prudential Regulation Authority (PRA) will be responsible for the day-to-day supervision of financial institutions that manage significant risk on their balance sheet. It will adopt a more judgement-focused approach to regulation so that business models can be challenged, risks identified and action taken to preserve financial stability.
- An independent conduct of business regulator, the Financial Conduct Authority (FCA), will take a tough approach to regulating how firms conduct their business. It will have a strong mandate for promoting confidence and transparency in financial services and to give greater protection for consumers of financial services. It will also have a strong role in promoting competition.
Financial Services Act
Financial regulation consultations
The Government has carried out three consultations on the proposals which then formed the basis of the Act. Links to these can be found below.
The Act will be underpinned by a number of pieces of secondary legislation. More information on this is available here:
A new approach to financial regulation: draft secondary legislation
Consultation on this closed on 24 December 2012.
Information on the Financial Policy Committee's macro-prudential tools can be found here:
Financial Services Bill: the Financial Policy Committee's macro-prudential tools
Consultation on this closed on 11 December 2012.
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