Since 2010, the Government has been overhauling the UK's financial regulatory framework. Under current proposals, the Financial Services Authority is to be disbanded with responsibility for financial stability passing to the Bank of England. Within the Bank will sit the Financial Policy Committee (FPC), responsible for horizon scanning for systemic risks and the Prudential Regulation Authority (PRA) responsible for the solvency and resolution of systemically important institutions. A new regulator, the Financial Conduct Authority (FCA), will be responsible for ensuring consumer protection and markets regulation.
This CII policy briefing summarises the new regulatory landscape and the implications for insurers, broking firms and consumers.