Financial Secretary to the Treasury, Mark Hoban has launched the government's consultation on the implementation of reforms to financial regulation. The document sets out detailed proposals for reform of the financial services sector.
Plans to overhaul the system of financial regulation give the Bank of England powers over macro prudential regulation through a newly established Financial Policy Committee from Autumn 2010.
Plans intend to create:
- A new prudential regulator under the control of the Bank of England responsible for supervising the safety and soundness of individual financial firms
- A new Consumer Protection and Markets Authority (CPMA) to act as a single integrated regulator focused on conduct in financial markets
- The new Prudential Regulation Authority will be responsible for prudential regulation of all deposit-taking institutions, insurers and investment banks
- Financial Ombudsman Service and the Financial Services Compensation Scheme will continue operating as a safety net, and will have an arm's-length relationship with the CPMA