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News on the System of financial regulation in the UK
The UK set out plans yesterday to overhaul the system of Financial Regulation giving the Bank of England powers over macro prudential regulation through a newly established Financial Policy Committee (FPC), which will be established on an interim basis from Autumn 2010. http://www.hm-treasury.gov.uk/d/consult_financial_regulation_condoc.pdf The consultation invites views on this proposal and in addition to plans to create: A new prudential regulator under the control of the Bank of England which will be responsible for supervising the safety and soundness of individual financial firms. A new Consumer Protection and Markets Authority (CPMA) to act as a single integrated regulator focussed on conduct in financial markets In particular it is important to read the following pages : 1. The role of central banks in financial stability (pages 9-11) 2. The role of central banks in prudential regulation (pages 11-12) 3. The functions of the FPC, including publishing the financial stability reports (pages 14-15) 4. The relationship between monetary policy and macro-prudential regulation (page 18)

News on the System of financial regulation in the UK