Call for FSA to regulate public sector advice

Katrina Lloyd
clock

The FSA should have the power to regulate financial advice given to public sector bodies, according to The Communities and Local Government Committee.

Its call comes in the wake of the collapse of the Icelandic banks which held around £1bn of UK public money when they folded in October 2008. The Committee believes the regulator should monitor services provided by firms offering local authorities advice on how they manage their cash reserves and investments, the BBC reports. The FSA should also scrutinise the independence of these firms. "As it stands, the FSA is powerless to intervene in the circumstances that led to a great deal of public cash being put at risk by the collapse of the Icelandic banks," said Dr Phyllis Starkey, chair...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

PA Asks: Are you worried about losing clients to targeted support?

PA Asks: Are you worried about losing clients to targeted support?

FCA outlined targeted support plans on Monday

Professional Adviser
clock 02 July 2025 • 1 min read
Aveni forms AI advisory board with wealth management leaders

Aveni forms AI advisory board with wealth management leaders

Senior execs from Aviva’s Succession Wealth, Schroders Personal Wealth, 7IM and Rathbones join forum

Sahar Nazir
clock 01 July 2025 • 2 min read
Majority of UK wealth management sector eyes acquisitions this year

Majority of UK wealth management sector eyes acquisitions this year

Continued appetite and momentum in M&A space

Isabel Baxter
clock 30 June 2025 • 3 min read