Government to introduce new financial regulations
The UK government will this week set out a raft of changes to the UK regulatory system which will see much of the current power handed back to the Bank of England amid concerns that the FSA (Financial Services Authority) is about to be disbanded. While it would appear almost certain that the FSA will be closed down or at the very least certain powers transferred to a new financial body, there are concerns that the current regulatory framework could be compromised. So why is the UK government handing power back to the Bank of England?
The FSA was originally introduced by Gordon Brown to reduce the power of the Bank of England, which has historically been the major player in the UK financial regulatory sector. However, there is no doubt that the performance of the FSA has improved dramatically over the last few months and indeed there were calls from many parties in the financial arena to maintain the FSA. Unfortunately for the FSA it looks as though these calls have been ignored and over the next 12 to 18 months the FSA will be disbanded and its power transferred to a new body.
It looks as though Mervyn King will become kingmaker in the UK after the current bout of regulatory changes have been pushed through.
Share this..
Related stories
Is The Power Switching From Directors To Shareholders?
The last few months have seen a large number of major companies come to the market cap in hand for financing to literally keep them in business. This has prompted many in the City to suggest that after the boom times it looks as though power has now passed from company directors to shareholders and the major institutional investors. Is this really the case?
While many people will...
Is George Bush set to bail out the US car industry?
As the potential effects of yesterday's Congress no vote against a potential multi-billion-dollar rescue package for the US car industry starts to hit home, there is speculation this evening that George Bush is on the verge of announcing an 11th hour deal. He has received serious criticism in the US financial press where many people blame him for the current situation in the US car market.
...
Royal Bank of Scotland considering a rights issue
The BBC has today reported that Royal Bank of Scotland is looking at the possibility of a £3 billion fund raising which would allow the company to pay the government in cash rather than shares with regards to its involvement in the asset protection scheme. This is a similar situation to Lloyds bank, where the directors of Lloyds are looking to raise outside money in order to reduce the UK governm...
Read MoreHSBC chief executive to give bonus to charity
Michael Geoghegan, the chief executive of HSBC, is in line for a £4 million bonus this year but he has revealed plans to give this to charity. However, five of the company's top earners will share a bonus pot of £35 million. The highest bonus is set to go to Stuart Gulliver, the head of the company's investment banking division, who is in line for a £9 million bonus which he has indicated he wi...
Read MoreFSA to stamp out financial advisers commission
In a move which is set to change the landscape of the whole financial services industry, the Financial Services Authority (FSA) has announced plans to stamp out commission for financial advisers for promoting individual investment products and investment services. Since the very early days of the financial services industry there has been a very close relationship between advisers and investment p...
Read More