In the aftermath of the 2008 financial crisis, all of the major political parties in the UK proposed significant change to the system of financial regulation. On election in 2010, the coalition government set out its belief that the tripartite system of regulation (under which the Bank of England, the FSA and HM Treasury have different responsibilities) had “failed spectacularly in its mission to maintain stability.”

It is commonly said that during the financial crisis the regulatory system did not provide sufficient or adequate leadership and that communication between members of the tripartite system was not good enough. The reforms are intended to address these perceived failures.