Regulatory Reform
On 16 June 2010, the Chancellor of the Exchequer, The Rt Hon George Osborne MP announced that the FSA would cease to exist in its current form and be replaced by:
- the Financial Policy Committee (FPC) of the Bank of England;
- a new prudential regulator, the PRA, responsible for the prudential regulation of banks, insurance companies and some investment firms;
- a new conduct of business and markets regulator, the Financial Conduct Authority, responsible for market regulation, prudential and conduct regulation of those firms not regulated by the PRA and conduct regulation of PRA firms.
The process of transition to the new regulatory regime has begun within the FSA and will last until the new regime is in place in January 2013.
Delivering the government's regulatory reform programme is clearly a significant task for the FSA and its Business Plan sets out how it intends to meet that objective. The message for firms', however, is that, for the foreseeable future it will be business as normal as the FSA expects to continue in its current form for approximately two more years.