Conservative party drops plans to disband FSA
It would appear that the Conservative party has dropped initial plans to disband the Financial Services Authority (FSA) with the promise nowhere to be seen in the coalition government policy document. Even before the Liberal Democrats came on board there had been speculation that the Conservative party would backtrack on recent plans to disband the FSA purely and simply because the FSA has been very successful of late in relation to insider trading and market abuse cases.
There was a feeling that a number of court cases had been brought forward to flex the muscles of the FSA in the face of a potential change in government. Whatever has been going on behind the scenes there is no doubt that the reputation of the FSA and its ability to successfully prosecute those involved in insider trading and market abuse has improved significantly of late.
Initially it seemed as though the Conservative party was looking to return the bulk of the regulatory power in the UK back to the Bank of England and in a best case scenario the FSA would have become a subsidiary of the "old Lady of Threadneedle Street". It will be interesting to see the relationship between the coalition government and UK regulators in the short to medium term.
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