Spotlight:
The End of the FSA
Summary & News Reference Materials

Editor's Summary

Today the Chancellor of the Exchequer announced a sweeping change in financial regulation in England. Within the next two years, the FSA will be replaced by three other organizations, with the bulk of its powers folded into the Bank of England.

While the FSA Chairman "welcomes" the plan announced by the Chancellor, one has to wonder what the rest of the City thinks of it.

And what does this mean for financial regulation (and regulatory reform) around the rest of the world? This is, after all, the sticking point that Congress has had trouble getting over in the course of American financial reform discussions - the complete removal of a regulator.

On a more local level, what does this mean for the SEC-FSA strategic dialogue? With its fifth meeting completed in February, under the umbrella of the 2006 Memorandum of Understanding between both agencies, the question arises as to whether the bonds of regulatory cooperation will have to be completely re-forged.

The FSA had been having a fairly good year - in the last six months alone it levied its largest individual fine ever, agreed to improve cooperation with the SEC, and successfully ran its largest investigation to date against insider trading. While the general idea seems to be that the FSA's handling of the financial crisis was the proverbial straw, did it really do so bad a job that it had to go?
 

News Articles

 

U.K. Scraps FSA in Biggest Bank Regulation Overhaul Since 1997
Bloomberg (6/16/2010)

 

U.K. Shakes Up Bank Regulation; FSA Will Be Broken Up
Wall Street Journal (6/16/2010)

 

Osborne unveils U.K. regulatory shake-up
MarketWatch (6/16/2010)

 

Mervyn King to take over regulation of the City as FSA disbanded
Guardian (6/16/2010)

Speech by the Chancellor of the Exchequer

 

Speech at The Lord Mayor’s Dinner for Bankers & Merchants of the City of London at Mansion House
George Osborne (6/16/2010)

FSA Statement

 

FSA Chairman welcomes Chancellor's plans for regulatory reform
Adair Turner (6/16/2010)

SEC-FSA Strategic Dialogue

 

SEC and UK FSA Hold Fifth Meeting of the SEC-FSA Strategic Dialogue
Press Release 2010-17 (2/1/2010)

 

SEC-FSA Memorandum of Understanding
(3/14/2006)

Recent Law Firm Memos

 

FSA imposes largest ever fine on an individual
DLA Piper (5/21/2010)

 

The UK FSA carries out its largest ever operation against insider dealing
Fried Frank Harris Shriver & Jacobson (3/26/2010)

 

SEC and FSA Announce Results of Strategic Dialogue Meeting
Katten Muchin Rosenman (3/10/2010)

FSA Handbook (Listing of all FSA Rules/Guidance)

 

FSA Handbook (Full)
As of 6/16/2010

FSM Act

 

Financial Services and Markets Act 2000
Office of Public Sector Information, National Archives

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