Banking Reform Bill Completes Committee Stage in House of Commons
On April 16, the Financial Services (Banking Reform) Bill 2012-13 completed its committee stage in the House of Commons. A revised version of the Bill, as amended in the committee stage, has been published.
The main aim of the Bill is to give HM Treasury and the relevant regulators powers to implement the recommendations of the Independent Commission on Banking (ICB) on ring-fencing requirements for the banking sector. The Bill is intended to make the banking sector safer, more resilient and more resolvable. The Bill will now pass to the report stage in the House of Commons. Banking Reform Bill.
FCA and PRA Publish Respective Approaches to Regulatory Failure
On April 19, the FCA and PRA (who together have taken over the powers of the FSA) published their respective approaches to investigating and reporting on regulatory failure, as required under the Financial Services Act 2012 (FS Act).
Part 5 of the FS Act outlines the tests for determining when each regulator must carry out an investigation into possible regulatory failure and provide reports of its findings and recommendations to HM Treasury. The tests are different for each regulator and will relate to their respective statutory objectives. The FCA and PRA statements of policy satisfy the FS Act which requires each regulator to explain how it will meet its statutory requirement to investigate possible occurrences of regulatory failure and to produce a report. PRA Approach. FCA Approach.