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 of ...

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

UK IFA deal numbers hit 'new peak' in 2025

UK IFA deal numbers hit 'new peak' in 2025

Deals rose from 50 to 133 between 2020 and 2025

Sophia Panayi
clock 12 May 2026 • 4 min read
Phillip Wickenden: The political map has been redrawn

Phillip Wickenden: The political map has been redrawn

'The market is not pricing personalities. It is pricing discipline'

Phillip Wickenden
clock 11 May 2026 • 6 min read
Why the end of paper shareholdings matters now

Why the end of paper shareholdings matters now

‘There is still time before the 2027 deadline’

Ben Rogers
clock 11 May 2026 • 4 min read