MSE News: Treasury sets out new financial watchdog powers

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"Plans to overhaul the regulation structure were revealed today, in a bid to prevent another crisis ..."

Read the full story:
Treasury sets out new financial watchdog powers

VT82

MSE_Dan wrote: »

"We now must all hope that by shortening the name, consumer protection doesn't end up in the gutter."

How to ruin an otherwise sound and newsworthy article with a petulant remark. Inflammatory, pessimistic, and most of all, bizarrely illogical.

SnowMan

All good stuff for those who are acronymically minded.

The article didn't mention that FCA were also a Danish football club (FC Amager) which declared themselves bankrupt in 2009.

On the subject of failure let's hope that FCA doesn't end up standing for Failing Consumers Again.

jambosans

Helen_Knapman wrote:

This was highlighted during the depths of the financial crisis in 2007 and 2008, which resulted in the part-nationalisation of two of the largest banks in the world, RBS and HBOS, and the complete nationalisation of Northern Rock.

RBS yes, HBOS not really. According to the below article, HBOS was 18th by assets and market value:-
http://www.guardian.co.uk/news/datablog/2009/mar/25/banking-g20#

I'm being pedantic, I know, but it's a news article, so I expect MSE to get the fundamentals right.

Joe_Bloggs

FPC PRA FCA
under which cup is the pea ?
Perhaps you guessed right but now!
FCA FCP PRA
under which cup is the pea ?
Ans: It is an ancient scam.
The pea will be elsewhere.

What does the pea represent ?
Why do we chase it when we know it is a con?

J_B.

Former_MSE_Dan

VT82 wrote: »

How to ruin an otherwise sound and newsworthy article with a petulant remark. Inflammatory, pessimistic, and most of all, bizarrely illogical.

Hi VT82,

I'm not sure how the remark is any of those things - a body to help consumers, called "Consumer Protection....." stands a much greater chance of doing its job, in my opinion.

FCA gives no indication to the man on the street that it is on his side, and may not focus the minds of those who work there on 'consumer protection' (which, for me, should also be their primary objective)

Thanks for comments though

Dan

jambosans

MSE_Dan wrote: »

I'm not sure how the remark is any of those things - a body to help consumers, called "Consumer Protection....." stands a much greater chance of doing its job, in my opinion.

FCA gives no indication to the man on the street that it is on his side, and may not focus the minds of those who work there on 'consumer protection' (which, for me, should also be their primary objective)

What an odd thing to say. I would give a little more credit to those who work for the Bank of England that they understand their job role beyond the organisations title.

Perhaps we should rename First ScotRail, Trains That Run With A Wee Bit Of Snow On The Tracks, in the hope it will focus the minds of those who work there.

Or, perhaps, we should not get caught up in the superficial irrelevancies of an organisation, and judge them by what they do, not what they are called.

Former_MSE_Dan

jambosans wrote: »

Or, perhaps, we should not get caught up in the superficial irrelevancies of an organisation, and judge them by what they do, not what they are called.

Yep I totally agree with that, and really hope they do a grand job.

However, I see no logic in, having already chosen a working title that did include Consumer Protection, then getting rid of it at this stage - would actually love to hear the reasoning

Dan

Alpine_Star

MSE_Dan wrote: »

Yep I totally agree with that, and really hope they do a grand job.

However, I see no logic in, having already chosen a working title that did include Consumer Protection, then getting rid of it at this stage - would actually love to hear the reasoning

Dan

''The government decided to rename the Consumer Protection and Markets Authority the Financial Conduct Authority to emphasise the new focus on the way banks, brokers and individuals behave.
“This is a conduct body. Whether you are buying an insurance policy from a high street broker or you are trading high finance, the FCA is your conduct regulator,” Mr Hoban said. “It does what it says on the tin.”


FT.com / Markets - Sharper teeth for financial watchdogs

In my view the decision to drop 'consumer' from the title makes it less likely that consumers will actually know that the organisation is a body set up in their interest.

I can only hope that the inclusion of the word 'conduct' will reflect the growing calls for a regulator with a more interventionist and pro-active approach.

SnowMan

MSE_Dan wrote: »

...However, I see no logic in, having already chosen a working title that did include Consumer Protection, then getting rid of it at this stage...

Just received the weekly newsletter from Paul Lewis (the Radio 4 Moneybox presenter). He makes a similar point about the name change which I quote below

I am slightly less pleased that the word ‘consumer’ is no longer in the FCA’s title and that consumers are kept as the third out of four tasks of the FCA (the same place consumers now occupy in the list of the FSA’s objectives). Ahead of consumers are enhancing confidence in the UK financial system and facilitating efficiency and choice in services............

For those interested the full proposal document can be accessed via the HM Treasury website at

http://www.hm-treasury.gov.uk/d/consult_newfinancial_regulation170211.pdf

Joe_Bloggs

@Snowman
Why did the document have £20.75 printed on the first page ?