Osborne makes way for greater financial security
UK Chancellor, George Osborne, has set out new reforms and regulations for the financial sector aimed to provide greater protection and enhancing financial stability.
The Financial Services Bill will replace the tripartite system which was set up by the previous Labour Government. Under the bill, the Chancellor will have greater powers over the Bank in the case of a crisis. The Bill will also enforce tougher regulation on high interest payday lenders and will introduce 3 new bodies within the Bank Of England;
· the Financial Policy Committee (FPC)
· the Prudential Regulation Authority (PRA)
· The Financial Conduct Authority (FCA)
Together they will be responsible to regulate and supervise the financial services of UK.