The new regulator

[Mike Cranny]

The Chancellor said last night

"We will also establish a powerful new Consumer Protection and Markets Authority.

It will regulate the conduct of every authorised financial firm providing services to consumers.



It will also be responsible for ensuring the good conduct of business in the UK’s retail and wholesale financial services, in order to preserve our reputation for transparency and efficiency as well as our position as one of the world’s leading global financial centres."

[FullyComp]

But, no doubt, still operating from very expensive premises employing people on very high salaries with very high bonuses and all paid for by us.

Financial regulation at its best.

[stevewhite]

No doubt!!

[James Sharp]

And a massive re-branding cost, with a new colour scheme, a new logo, new carpets with the new logo stitched into it, new plate glass windows with the new logo etched onto it... etc etc.

[Mike Cranny]

Sector Pants will be in charge of the Banking bit. When he took over from John Tiner he quickly reversed the principled based regulation, stopped kow-towing to the Govwernment and changed the touchy-feely-woolly TCF nonsense into a regulatory tool - which despite the terrible admin and confusion that surrounded it, began to deliver scalps.

He is the best man for the Banks - but I hope he stays tough, as they are not likely to want to change and can't be trusted.

As for the new regulator, lets push for decentralisation, and fees based on what products you sell. If you don't sell car insurance, which is mis-sold and mis-bought, or travel insurance why should you pay into the complaints pot.

If you don't sell GAP, ASU or a bunch of dodgy add-ons which are all sold rather than bought, you should be in a different pot.

As for PPI - scrap it - banks shouldn't lend to people who are risky. Credit should be for the rich, not the poor.

[Jack Killms]

Originally Posted by FullyComp

But, no doubt, still operating from very expensive premises employing people on very high salaries with very high bonuses and all paid for by us.

Financial regulation at its best.

To be fair if that is a dig at the FSA, I am sure they took on that space at Canary Wharf back when the place was a desert, noone wanted to go there and they got a great deal

[Mike Cranny]

Here are the main details about what is coming:-

• A new body called the Consumer Protection and Markets Authority will take over the FSA's responsibility for protecting the consumer and regulating conduct.

• It will regulate the conduct of every financial service business, both retail and wholesale.
  
  

• It will have a strong mandate to make sure that financial services operate transparently, so that everyone – from someone buying car insurance to a trader at a large bank – can have confidence in their dealings, and know that they will get the protection they need if something goes wrong.
  
  

• Its aim will be to deliver the best possible protection for consumersand be a proactive consumer champion.
  
  

• It will be given a tougher, more proactive approach to regulating conduct and its main aim will be to promote confidence in financial services.
  
  

• It will take over the FSA's responsibility for the Financial Ombudsman Service (FOS)
  
  

• It will also have responsibility for the Financial Services Compensation Scheme.(FSCS).
  
  

• It will oversee the Consumer Financial Education Body (CFEB).

• Before it is set up there we will be a full consultation process and a policy document will be published within the next six weeks

During the period of transition to the new regime, the Government will try to ensure the following:-

• That uncertainty is minimised and transitional costs for firms kept as low as possible

• That the current standard of focused regulation will continue until the CPMA takes over

• That the move is swift, but with proper consultation and clarity for the FSA staff affected during transition.

• That the law enacting will be passed within the next two years.

[FullyComp]

Yes Jack I am sure the rents in Canary Wharf are a lot lower than in the north of England.........

My point is, the FSA are an organisation who are funded by the very people they regulate. We had no choice. It was forced upon us. Therefore, they have a responsibility to operate at minimal costs to get the job done.

So did they they scour the UK looking for the cheapest building to operate from? No of course not. Did they choose a central location? Nope not that either. Look at their annual budgets, the salaries, the bonuses, the company cars....

The FSA budget for this year is £458m and they employ nearly 4000 staff and you can bet they are not on £12k a year either. Hector Sants gets paid over half a million pounds a year. It paid £20m in staff bonuses in 2008.

"Our budget is met from a levy on the firms we regulate. We receive no funding from the taxpayer."

Yes I know some of it comes from the fines they impose but the fines for 2008 were £27m which is tiny compared to their annual budget so the rest comes from the fees we pay.

I am all for regulation but I pay for regulation and not to fund a lavish lifestyle in the area of the UK with the highest cost of living. It's this open chequebook bottomless pit mentality that has got the UK into this mess in the first place.

[Mike Cranny]

The love of money is the root of all evil! The culture of greed at the top has caused this mess. Many of those at the bottom will have to pay for it.I think the FSA's average salary is about £98k.

[Mike Cranny]

Just in case we think what is happening in the UK with the new regulator is unique, something very similar is happening in America. A new "Consumer Finance Bureau" is being set up in the FED to oversea financial transactions.

You may recall that the FSA was set up by Gordon Brown after the American "super regulator2 model. It now looks as if everyone is getting on the "consumer protection" band wagon.
Far from a period of de-regulation, we are in for a period of tough regulation, and the FSA's comments that you can't ask clients to confirm they have read something, if as we all known, they don't, is an indicator of the direction we are heading in.