The FSA has added a new web page to its banking sector web pages. The new web page sets out the FSA's banking and compensation reform project which was launched in October 2007 (the Project).
The FSA states that the Project has five key objectives:
- Achieving effective coordinated actions by authorities (in the UK and internationally) to strengthen the resilience of global financial markets.
- Reducing the likelihood of individual banks facing difficulties.
- Reducing the impact on consumers and the financial system if a bank does get into difficulty.
- Providing effective compensation arrangements in which consumers have confidence.
- Strengthening the Bank of England (BoE) and improving coordination between the Tripartite Authorities (FSA, HM Treasury and the BoE).
The FSA also sets out a timetable for the Project. The key dates include:
- October 2008: FSA to launch proposals regarding the Financial Services Compensation Scheme (FSCS).
- November 2008: FSA to publish feedback on Consultation Paper 08/8: FSCS funding - tariff changes and new rules.
- December 2008: FSA to consult on proposals to reduce the likelihood of a firm failing and how it will reduce the impact if a firm fails.
- January 2009: FSA to work with the British Bankers' Association and the FSCS to research how fast payout can be achieved by banks.
- Currently the FSA is working with focus groups across the UK to see what information should be available to the consumer in the event of a bank failing. The FSA will include proposals on these issues in a consultation paper which it intends to publish in January 2009.