Treasury unveils financial services reform plan

The government has published its plans to scrap the FSA and overhaul financial services regulation.

A consultation paper, published this morning by the Treasury, invites views on:

• giving the Bank of England powers over macro prudential regulation through a newly established Financial Policy Committee, to be established on an interim basis from Autumn 2010.
• establishing a new prudential regulator under the control of the Bank of England headed by a new Deputy Governor (which will be responsible for supervising the safety and soundness of individual financial firms.
• creating a new Consumer Protection and Markets Authority (CPMA) to act as a single integrated regulator focused on conduct in financial markets

The consultation will close on 18 October 2010. For further details of the consultation paper keep logging onto Insurancetimes.co.uk.