< Back to previous page

Watchdog survives dismantling

Published on 19 May 2010 under category: legal

The financial services watchdog will not be dismantled, following negotiations within the new coalition government.

The Conservatives had pledged to break up the Financial Services Authority (FSA) by transferring its regulatory authority to the Bank of England and creating a new consumer protection agency.

However, a compromise has been reached with the Liberal Democrats who are keen for the body to continue to perform its current role.

According to reports, a new authority will oversee financial stability.

On the decision, the governor of the Bank of England Mervyn King said: "Right through this I have always said that what concerns me most is what the nature of regulation is, not who does it.

"I can reiterate that today. I have never made any pitch for any particular responsibility but we are concerned about its nature."

Following on the talks about the FSA's future, the watchdog announced that it would be taking a tougher, more intensive rule in scrutinising the financial industry.

If you require advice on Corporate Fraud please call us on +44 (0)20 7831 0101 and ask for Dan Hyde