BSA calls for accountability in new regulatory regime

The BSA finds much to welcome in the most recent set of proposals including:

• New strategic and operational objectives for the FPC, PRA and the FCA, particularly regulatory efficiency, value for money and cost-effectiveness
• Recognition of the need for corporate diversity
• Commitment to the need for strong co-ordination between the new regulatory bodies
• The recognition that it is crucial for the UK economy that the regulators are involved and co-ordinate their activities at EU and international level.

However, the BSA still retains some concern about the accountability of the Bank of England. And it is particularly concerned that the commitments to efficiency and cost effectiveness have yet to be translated into practical arrangements, the BSA has put forward clear proposals for achieving this.

Adrian Coles, director-general, BSA commented: "Broadly speaking, there is much to welcome about these more detailed proposals for the new regulatory regime. We are pleased to note the degree to which the new arrangements will recognise corporate diversity, which will help to ensure a level playing field for businesses of different corporate forms under the new regulator.

"We do have some concerns about the emergence of an excessively powerful Bank of England. Under the proposed new arrangements the Governor of the Bank of England will be Chairman of the MPC, the FPC and the PRA, as well as having oversight of the FCA, and the bank resolution regime and we believe that it is time to strengthen the resources of the Treasury Select Committee to provide a measure of balance.

" We also call for tougher action on cost control, and made some practical suggestions - shared back offices, common gateways - as to how this should be achieved. "