The current “Tripartite” financial structure which governs the UK financial system is soon to change under the current UK Government. The Chancellor, George Osborne believes that the existing system is unwieldy and inefficient.
The existing “Tripartite” system includes the FSA, Treasury and Bank of England.
The most significant amendment will be the abolition of the FSA and the establishment of three new bodies, the first two will be controlled by the Bank of England and will regulate financial services. These are:
- The Financial Policy Committee, this new body will have responsibility for financial legislation and overseeing the risks in the financial sector. It has the authority to force the following to organisations to amend their policies;
- Prudential Regulation Authority, which will take over responsibility for supervising the safety and soundness of individual financial firms.
- Financial Conduct Authority; has the task of protecting consumers from unfair, immoral practices, and making sure that workers in the financial services sector comply with rules.
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