Chancellor George Osborne has applauded the restructure of the FSA and reassured MPs the new regulator will not simply ‘tick boxes'.
During Treasury questions yesterday afternoon Osborne called the tripartite system of financial regulation created by Labour in 1997 a failure.
He said: "The creation of the Consumer Protection and Markets Authority (CPMA) will provide a stronger consumer voice; it will be a world-class regulator."
He added the Prudential Regulatory Authority (PRA) ‘will exercise discretion and judgement as well as ensuring boxes are ticked' in order to counter future bank collapses.
On Tuesday morning, FSA chief executive Hector Sants wrote to heads of financial service providers to tell them the restructure of the regulator will cost £12.3m.
Replacing outgoing Phil Loney
162,000 DB transfers taken place
Track auto-enrolment pots
Latest news and analysis