This update summarises the new UK financial regulatory structure and the draft Financial Services Bill at present subject to scrutiny in the UK Parliament.

The New UK Financial Services Regulatory Structure

The Government’s proposals for reform of the UK financial services regulatory structure were announced by the Chancellor of the Exchequer in June 2010. In part, they represent a response to failures in UK financial regulation identified during or after the financial crisis which began in 2007.

Introduction

Responsibility for financial stability in the UK has hitherto been shared by HM Treasury, the Bank of England, and the Financial Services Authority (the “FSA”) under what is known as the tripartite system.