On 17 February 2011, HM Treasury published their second major
consultation paper on the new regulatory regime for financial
institutions - 'a new approach to financial regulation:
building a stronger system.' The consultation period is only 8
weeks – it closes on 14 April. The latest paper runs to
over 100 pages of detailed explanation; it amounts to a full blue
print for the new regime, which will be introduced next year.
Simon Morris has therefore produced an analysis of the consultation
paper and the new regulatory regime, as we now understand it. This
highlights the main points for regulated firms and provides his
insight into all the key areas.
To read Simon's report, please click here.
Simon's report explains the new institutions (which will
replace FSA) and their roles. These are the FPC (the
Financial Policy Committee of the Bank of England), the PRA
(Prudential Regulation Authority – a subsidiary of the
Bank of England), and the newly named FCA (Financial
Conduct Authority - until recently called the CPMA).
Simon looks at topical issues, such as the proposed new powers
of the FCA to ban products or limit their
distribution for up to 12 months and to announce that it has
commenced disciplinary action against a
firm. The report also looks at other new
developments, such as the enhanced
competition role for the FCA and the approach to
the insurance sector and to consumer responsibility.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 22/02/2011.