A recent Treasury paper has proposed merging the Financial Reporting Council with the Financial Services Authority. The paper, ‘A New Approach to Financial Regulation’, stated that “perhaps the most obvious failing of the UK system...is the fact that no single institution has the responsibility, authority or powers to monitor the system as a whole, identify destabilising trends, and respond to them with concerted action”. The paper went on to suggest the instigation of a Financial Policy Committee, housed in the Bank of England, to ensure financial stability.