Industry figures have painted a "nightmare scenario" resulting from the break-up of the FSA with "horribly troublesome" turf wars breaking out between new regulatory bodies with overlapping functions.
The dismantling of the FSA is part of a regulatory shake-up announced by Chancellor George Osborne which will give the Bank of England a strengthened role. Under the plan, the FSA will be replaced by a new Prudential Regulatory Authority (PRA), a Consumer Protection and Markets Authority (CPMA) and a Financial Policy Committee. A separate Economic Crime Agency (ECA) will take over enforcement functions from the FSA and SFO. The break-up of the tripartite system of financial regulation - ushered in by then Chancellor Gordon Brown in 1997 - will be in place by 2012. However, in a web...
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