22 Jun Treasury Continues to Mull Over Abolition of FSA
The Treasury are still mulling over the possibility of abolishing the Financial Services Authority (FSA) entirely, with Chancellor George Osborne apparently readying himself to strip the financial regulator of most of its powers.
The news, reported in The Guardian, follows the Mansion House Speech in which many of the powers currently enjoyed by the FSA were handed over to the Bank of England.
While the regulator still currently has some duties, it is unknown at this moment in time if those duties will be passed on to others and the FSA itself will be completely disbanded.
The group will lose its independent role, with Osborne claiming in his speech that it had become so focused on rules based regulation that it missed many important fac tors that led
to the banking collapse.
However the regulators long term future still hangs in the balance.