Financial Services Bill unveiled

Posted on Jan 27, 2012

Chancellor George Osborne has revealed details of the Financial Services Bill which will overhaul the regulation of the sector. The bill will create three new bodies within the Bank of England to regulate financial services, as follows:

* The Financial Policy Committee (FPC) will have overall responsibility for financial regulation and monitoring the risks of the financial services sector to the economy. This body will oversee two new financial watchdogs:

* The Prudent Regulation Authority (PRA), which will take over responsibility for supervising the safety and soundness of individual financial firms, and

* The Financial Conduct Authority (FCA), which will protect consumers and ensure workers in the financial sector comply with the rules.