Financial Regulation (Consultation Responses)

Mark Hoban Excerpts

Wednesday 24th November 2010 Written Statements

[The Financial Secretary to the Treasury (Mr Mark Hoban)]

The Government have today published a summary of responses to their consultation document, “A new approach to financial regulation: judgment, focus and stability”.

This document, published on 26 July 2010, set out the Government’s plans for fundamental reform of the UK’s financial regulatory framework, providing the Bank of England with control of macro-prudential regulation and oversight of micro-prudential regulation. The Government will legislate to create:

a Financial Policy Committee in the Bank of England;

a new Prudential Regulation Authority, as a subsidiary of the Bank; and

an independent consumer protection and markets authority (CPMA).

In addition to a summary of consultation responses, this document confirms the Government’s decisions, that:

the UK Listing Authority will remain within the CPMA’s markets division; and

the FSA’s criminal enforcement powers in relation to market conduct will be retained within the CPMA at this time.

The document also sets out the Government’s preliminary conclusions on key themes raised by respondents to the consultation.

The Government will present more detailed policy and legislative proposals, for further consultation early in 2011. The Government intend to introduce legislation to implement their proposals in mid-2011 and the passage of legislation is expected to take around a year. The new regulatory framework is anticipated to be in place by the end of 2012.

Copies of “A new approach to financial regulation: summary of consultation responses” have been deposited in the Libraries of both Houses and published on the HM Treasury website.