Since his 2010 Mansion House speech, where Chancellor George Osborne set out his agenda for reforming the current system of financial regulation*, the situation has progressed. The current system – which shares responsibility for financial stability between the Treasury, the Bank of England and the Financial Services Authority (FSA) – is being replaced with a new system, and the FSA will cease to exist in its current form. The legislation to implement the reforms will establish a Financial Policy Committee (FPC) in the Bank of England with a dedicated focus on identifying and managing macroeconomic and other risks to the stability of the financial services sector. It will also create a new Prudential Regulation Authority (as a subsidiary of the Bank of England), responsible for the day-to-day prudential supervision of financial institutions, and a Financial Conduct Authority (FCA) with responsibility for the conduct of all financial services firms.
* Essentially an Integrated Approach in which a single universal regulator (super regulator) conducts both safety and soundness oversight and conduct-of-business regulation for all the sectors of financial services business. (Also in Germany)