Comments on: Is their a specific body responsible for regulating banks and building societies?

By: ALPHF

ALPHF — Sat, 20 Feb 2010 09:37:13 +0000

The FSA

From their website:
We are an independent body that regulates the financial services industry in the UK.

We have been given a wide range of rule-making, investigatory and enforcement powers in order to meet our four statutory objectives. In meeting these, we are also obliged to have regard to the Principles of Good Regulation.

We summarise our Statutory Objectives and Principles of Good Regulation in three Strategic Aims:

* Promoting efficient, orderly and fair markets;
* Helping retail consumers achieve a fair deal; and
* Improving our business capability and effectiveness

So…yes…something needs to be reformed.

By: Mark J

Mark J — Fri, 19 Feb 2010 10:43:19 +0000

There used to be one authority.. The Bank of England, however the current government partially removed responsibility from the BoE and transferred it to the Financial Services Authority. However it left some regulatory and corrective actions with the BoE. But it also imposed other requirements on the BoE. this was the reason for the public collapse of Northern Rock. The BoE could no longer act behind the scenes it what it though was the public interest.

By: Gonz

Gonz — Wed, 17 Feb 2010 13:30:42 +0000

The Financial Services Authority, and I think there will be a claim against the regulators if ordinary savers lose their money. If I put £50,000 in a savings account and the bank goes bankrupt there will be a comeback.

If I made the same investment in a fund whose value can go up and down in relation the performance of the fund manager’s investment – there can be no comeback.

By: jory

jory — Tue, 16 Feb 2010 06:44:43 +0000

The FSA is supposed to regulate financial activity in the UK.
Of course banking and these derivatives tend to be global entities, thereby avoiding proper scrutiny.

By: Harumbah

Harumbah — Sat, 13 Feb 2010 08:32:46 +0000

Yes, the Financial Services Authority