Key role for FSA in financial stability proposals

In a new report released today, ‘Banking Reform’, the Committee makes a series of recommendations on the work undertaken by the FSA in relation to potentially failing financial institutions, depositor protection and the proposed Financial Stability Committee of the Bank of England. The Report says that ‘heightened supervision', sometimes referred to as the amber zone of regulation, should be considered a distinct and separate state of supervision, segmented from both normal supervision and from the Special Resolution Regime. It recommends the FSA be placed under a statutory duty to pre...