Many advisers will be disappointed this morning the FSA is likely to survive as new Chancellor George Osborne has been forced to water down plans to hand over banking supervision to the Bank of England.
However, it is not all good news for the banking sector as an independent commission will consider breaking up big banks, which combine retail and investment banking arms. It will report back within a year, the Financial Times reports.
Tory officials admitted last night the FSA could survive the planned shake-up of banking regulation.
However reports suggest the independent commission will be made up of senior directors from the FSA, as well as the Bank of England and independent experts.
It will have powers to intervene over the head of the regulator if it decides there is too much risk building up in the system.
While the Bank will be given macro-prudential control, monitoring systemic risk in the economy, the Liberal Democrats insisted it should not also be responsible for regulating individual banks.
Last night, Tory officials said under the new system, the Bank of England would only have "oversight" over the supervision of banks.
According to the FT, the hand of Vince Cable, the Lib Dems' Treasury spokesman and new minster for business and the banks, is visible throughout a long section on banking reform contained in the coalition agreement.
As part of a programme lasting until 2015, both parties have agreed to impose a banking levy and to crack down on bonuses as well as explore ways to require banks to make more loans available to small businesses.
The aviation sector's constant evaluation of errors in order to improve safety should be applied to defined benefit (DB) schemes, as too many are repeating the same mistakes again and again, research has shown.
IA sectors – help or hindrance?
Despite multiple complaints
Annuity market worth £4bn in 2017
For ‘distress’ caused