New watchdog to be renamed Financial Conduct Authority
The government’s new financial regulatory system will have a much sharper focus on financial conduct, according to City minister Mark Hoban.
In an interview with the FT, Hoban said that the Consumer Protection and Markets Authority - one of the three regulators to be set up as a result of the abolition of the FSA - will now be known as the Financial Conduct Authority (FCA).
The Treasury is due to unveil its latest set of proposals on revampiong financial services regulation today.
Confirming proposals already outlined by the FSA in an earlier consultation document, Hoban said that the FCA would have the powers to ban retail products or limit their distribution for up to 12 months.
The new body, which is due to be headed by Hong Kong’s top financial regulator Martin Wheatley, will be able to reveal that it intends to penalise companies and individuals before the target has been able to present its case to an internal appeal body.
Hoban said: “This is a conduct body. Whether you are buying an insurance policy from a high street broker or you are trading high finance, the FCA is your conduct regulator.
Justifying the tougher stance on enforcement, he said: “You need to have proper focus and mandates and the mandates need to be underpinned by the powers to do the job.”
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