New developments in the changing structure of financial regulation

On 28th October, the SIB changed its name to the Financial Services Authority (FSA). The FSA will exercise all the functions which the SIB had under the Financial Services Act 1986 and continues to be the designated agency under the Act. The name change of itself does not alter the supervision of recognised bodies, nor the regulation of directly regulated firms, collective investment schemes or service companies. Over the next two years the FSA will acquire its full range of powers in two further stages. First, the Bank of England Bill will transfer from the Bank to the FSA responsibility for supervising banks, wholesale money market institutions and ECHO, the foreign exchange clearing house. Second, the proposed financial regulatory reform Bill will create a new statutory regime under which the FSA will acquire regulatory and registration functions currently exercised by the outstanding regulatory bodies.