The United Kingdom’s Chancellor of the Exchequer has announced the abolition of the Financial Services Authority in its current form. In a June 16 speech, George Osborne stated the coalition government will legislate to create a new “Prudential Regulatory Authority,” to be operated as a subsidiary of the Bank of England. The Prudential Regulatory Authority will be solely responsible for the day-to-day “prudential” supervision of financial institutions. Details are available in Chancellor Osborne’s speech, the Treasury’s summary of that speech, and in a FSA press release welcoming the change.
This post written by Brian Perryman.