George Osborne set to announce FSA changes
It is believed that George Osborne will use this Wednesday's Mansion House speech to confirm that the Bank of England will take over the FSA's former role for preventing future financial crises. However, an executive at a leading insurer in the UK has launched a ferocious attack on the FSA with accusations of an "intrusive approach" to vetting having scared off a number of prospective non-executives in UK boardrooms. The executive in question, Paul Cassidy of Liverpool and Victoria, believes that previous means of vetting directors has led to British boardrooms being "full of clones".
It is ironic that the FSA is coming under significant attack from those within the industry, and indeed looks as though it will lose part of its power in the regulatory environment, at a time when it has never been more successful in policing the UK financial arena. Previously the Conservative Party had indicated an intention to strip the FSA of regulatory powers although David Cameron has backtracked somewhat since he took control of 10 Downing Street.
There have been rumours and counter rumours regarding the future role of the FSA within the UK regulatory framework although it looks as though the Bank of England could be the main benefactor from the change in government. However, George Osborne and David Cameron would be taking a massive risk by relegating the FSA to a minor role in the UK regulatory regime, especially after recent successes.
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