Government plans for the reform of financial markets
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Issued 08 July 2009
The Chancellor of the Exchequer Alistair Darling has today published
'Reforming Financial Markets', a document setting out the Government’s proposals
for the reform of the financial system.
The proposals focus on significant reform of the way banks are regulated,
with more emphasis put on the risks financial firms can present to the economy
and greater protections for consumers. They include:
- New plans for the FSA to place higher capital requirements on firms that
present greater risks to the system and measures to deal with the potential
failure of institutions that could have a significant impact on the economy
- Steps to help consumers make better informed choices, including a national
money guidance service funded by a levy on the financial sector and a new
independent consumer education body.;
- A strengthened framework for financial stability, to deal with system-wide
risks in today’s more complex and global markets. This will include
legislating to set up a new Council for Financial Stability - which will bring
together the Bank of England, the FSA and the Treasury to monitor system-wide
financial stability and respond to long-term risks as they emerge.
Alistair Darling said:
"Our economy has a clear need for well managed, well functioning banks and
financial institutions - to perform a vital set of functions - channelling
investment and helping people save and plan for the future. But regulators and
governments too must learn from the events of the last two years - better
understanding the risks that come from rapid globalisation in the financial
system
“Our central objective must be to ensure that - as we come through the
downturn - we reform and strengthen our financial system and rebuild it for the
future. With consumers that are better informed, financial institutions that are
better managed, and markets that are better regulated.”
Notes
1. View the full report
'Reforming financial markets' .
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Article Published/Sorted/Amended on Scopulus 2009-07-10 11:36:52 in Economic Articles
