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Topics: Bank of England| FSA| George Osborne| UK Election 2010
Chancellor George Osborne refused to confirm Tory plans to scrap the FSA were completely off the agenda as the Government unveiled its first five year plan.
When asked if scrapping the City regulator was now completely off the Government's radar, Osborne said the coalition was "still discussing all the options".
In its policy document today, the Government said the Bank of England (BoE) will assume control of macro-prudential regulation but will only "oversee" micro-prudential governance, suggesting the FSA will continue with its existing supervisory powers.
But Osborne's remarks suggest its future remains uncertain.
Last July, then shadow Chancellor George Osborne said a Conservative government would abolish the FSA and hand regulation back to the BoE, adding the system of banking regulation set up by Gordon Brown had "patently failed".
The new Government today confirms plans to reform the regulatory system "to avoid a repeat of the financial crisis", including plans to "promote mutuals".
It will introduce a banking levy and take "robust" action to tackle what it calls "unacceptable" bonuses in the financial services sector.
It will also take steps to reduce systemic risk in the banking system and establish an independent commission to investigate the "complex issue" of separating retail and investment banking. The commission will be given one year to make its initial recommendations.
A free national financial advice service, funded by a new social responsibility levy on the financial services sector, will also be created.
Today's document provides more details than the four-page deal produced during negotiations in the days after the formation of the coalition government.
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| Comment | Osborne keeps door open on scrapping FSA |
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FSA's Responsibilites
I trust that the tories will continue their with stated policy to scrap the FSA and reform financial regulation. Osbourne's statement that the FSA has 'patently failed' is patently obvious. If IFAs were as inept as the FSA has proved to be then the IFA sector would have been reviled and scrapped as a concept by now. The point is though that IFAs are not inept as is evidenced yet again this week by the low level of complaints about IFAs and the even lower number of upheld complaints. My mother used to say (she died in 1995) that the trouble with this world is that there are too many brains and not enough common sense. The FSA is a case in point. Let's hope any revision is more than simply a change of name but an adoption of common sense over brains.
Posted by: Jefroc
That is good news
The FSA are no more than a group of bankster cronies. Their only purpose was to destroy all IFA competition to Banks. As the banks have been shown to be no better than common criminals when dealing outside of their traditional core businesses so the FSA has reached the end of its useful life. The sooner they are put out of their misery the better.
Posted by: CJ_51
Scapping Fsa
The FSA Have been closing ifas and brokers down for years . Financial services will be no longer be around. Fsa is a bunch of white collered people enforcing power to close and fine companies where not due . I Agree to abolish as i find them a waste of tax payers money .
Posted by: george
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Scrap FSA?
Good on you George! I hope all IFAs have also registered that Nick Clegg has invited suggestions of bad laws that new reviewing. How about the FSMA2000. Lets start with the FSA and FOS being forced to recognise caveat emptor.
Posted by: John