Call for FSA to regulate public sector advice

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 ...