Coming into power so soon after the financial crisis, regulation was high up the coalition government's agenda, and the Treasury wasted little time in setting the course for change.
Despite initial speculation the status quo would be maintained, the path has now been laid for the FSA to be succeeded by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). The end of the tripartite regime will also see the establishment of the Financial Policy Committee within the Bank of England, which will be responsible for macro-prudential regulation. However, the PRA and FCA will still be independent of the government and there is no sign yet of any parliamentary oversight, often a criticism of the current system. Although the full divergence...
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