The Financial Conduct Authority (FCA) should be broken into two so that one part focuses on finding rule-breaking banks and the other supervises the wider financial industry, according to a group of MPs.
In a report entitled Review of the reports into the failure of HBOS, the House of Commons Treasury Committee has said the FCA is "outdated and can be construed as unfair". It has suggested separating supervision and prosecution into two functions, stating the case "merits serious re-examination", and has urged the Treasury to appoint an independent person to undertake a review. The report was critical of the Financial Services Authority (FSA) - as well as the FCA and Prudential Regulation Authority, which succeeded it in 2013 - for its role in the HBOS bank saga and argued that former...
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