Chancellor confirms FSA will "cease to exist in current form"
Chancellor George Osborne has confirmed in his first Mansion House speech that he will give the Bank of England the key role in regulating the UK financial sector and that the Financial Services Authority (FSA) will “cease to exist in its current form”.
Mr Osborne said he would abolish the current system of financial regulation, revealing that FSA chief executive Hector Sants, who had been due to leave this summer, would stay on to oversee the transition, which is due to be completed by 2012.
Mr Osborne criticised the current tripartite system of regulation, which divides responsibility between the Bank of England, the FSA and the Treasury.
"No one was controlling levels of debt, and when the crunch came no one knew who was in charge," he said
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