RTTNews - U.K.'s Financial Services Authority should hold authority of financial regulation instead of passing powers to the Bank of England, Business Secretary Peter Mandelson will say on Monday, reports said.
In a speech to be delivered to the British Bankers' Association, he will say We need to keep prudential and conduct of business expertise in one place, in a regulator capable of seeing all parts of the picture at once. That regulator has to be the FSA.
According to reports, he will say, While I think there is an argument for the Bank taking a more direct role in financial stability issues, I don't support a twin peaks system. I believe the lesson of the last year is we need a stronger regulator, not a weaker one.
He will add that he never felt such a sense of distrust and anger between the financial sector and the rest of the economy.
Earlier in the month, the select Committee on Economic Affairs of House of Lords had recommended the government to return responsibility for macro-prudential supervision to the Bank of England as the framework of regulation and supervision failed to mitigate the financial crisis. Lawmakers had also criticized FSA for concentrating mainly on consumer protection.
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