After a period of ‘will they, won’t they?’, the Chancellor finally ended the speculation over the Financial Services Authority’s (FSA’s) fate in his Mansion House speech.
The announcement spelled the end of the tripartite regulation system as well as the FSA, whose responsibilities will be shared out among newly-created bodies after its planned demise in 2012. The new Government has opted for a ‘twin peaks’ model of regulation, whereby conduct of business and prudential regulation will be supervised by separate bodies.
