Treasury publishes regulation responses: Treasury has published the responses it received to its consultation on its new approach to financial regulation, and a summary of the responses. It says:
- most respondents welcomed the proposed framework and the emphasis on financial stability with more macro-prudential regulation;
- themes emerged stressing the importance of accountability of regulators, co-ordination between the authorities, a strong markets regulation function and the European and international agenda;
- it envisages "shadow running" a twin peaks structure within FSA better to understand the arrangements that will need to be in place for the Prudential Regulation Authority (PRA) and Consumer Protection and Markets Authority (CPMA) to work together effectively;
- it recognises the strong arguments for keeping the UKLA within the CPMA and has decided to do so. It will also keep FSA's criminal enforcement powers in relation to market conduct within the CPMA;
- it notes concerns about representation in Europe but feels co-ordination between regulators should ensure this is strong, and will not change the current European representation until the UK has new legislation.
Treasury now plans detailed policy and legislative proposals in early 2011. Before the end of 2010, the Government intends to consult on whether the CPMA should take over consumer credit regulation. Treasury plans to introduce the necessary Bill before the Parliamentary summer recess in 2011, and for it to receive Royal Assent by summer 2012, with the intention of the new regulatory bodies being "up and running" by the end of 2012