British government opens public consultation on its new approach to financial regulation

Today the Financial Secretary to the Treasury, Mark Hoban, opened a public consultation on the UK government’s proposal to financial regulation. The proposal envisages to place the Bank of England in charge of macro-prudential regulation and to establish a new conduct regulator - the Consumer Protection and Markets Authority CPMA - charged with consumer protection in financial services.

The CPMA will be given a broad mandate to monitor retail financial markets, regulate exchanges and fine banks. In a speech at the London Stock Exchange Hoban stressed that the new body will “build on the FSA’s recent progress towards a more proactive and interventionist approach to retail conduct regulation, backed by tough enforcement to ensure credible deterrence.”

The proposal also envisages the establishment of three advisory panels - consumer, practitioner and small business practitioner. Comments to the consultation can be submitted by 18 October 2010.


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Source: HM Treasury