The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

BBA Calls for Accountability and Strong Governance as New Regulators Take Shape

The new UK financial regulators currently being created need to be supported by strong systems of governance and accountability, the British Bankers’ Association has told HM Treasury.

In its response to the latest Treasury consultation on regulatory reform, the BBA supported the new focus on supervising individual firms while also monitoring risk in the economy, such as asset price bubbles. But it cautioned that in order to be fully effective the new regulators must be able to work together and must have appropriate governance and accountability mechanisms.

Under the reforms the Bank of England would have responsibility for monetary policy and financial stability, oversight of prudential supervision and payment and settlement systems, lender of the last resort and resolution authority – all under the same chairmanship.

The BBA also said:

  • the new Financial Policy Committee (FPC) should define its remit as maintaining a stable and sustainable supply of credit to the economy, rather than maintaining “financial stability”, which in practice is difficult to define. A reliable credit supply is the practical outcome bank customers will expect from financial stability
  • the new Prudential Regulatory Authority (PRA) should include among its objectives a reference to international competitiveness, innovation and growth. A strong regulatory framework should provide a strong platform for the UK financial services industry to achieve sustainable growth and success; and
  • the Financial Conduct Authority (FCA) will have the power to intervene in the design of new financial products, but it is unclear how this might operate in practice, and what the FCA’s responsibilities will be if it were to intervene. 

The BBA also welcomed the statutory duty of the PRA and FCA to coordinate their work and to agree a memorandum of understanding.

Related content

WEBINAR

Recorded Webinar: Managing the transaction reporting landscape post Brexit: MiFID II, SFTR, EMIR

The transaction reporting landscape has, for many financial institutions, expanded considerably in size since the end of the UK’s Brexit transition period on 31 December 2020 and the resulting need for double reporting of some transactions to both EU and UK authorities. It has also changed dramatically following the UK government’s failure to reach equivalence...

BLOG

DANIE Consortium Uses Game Changing Privacy Enhancing Technology to Improve Client Reference Data Quality

The DANIE consortium set up to help financial institutions improve the quality of their client reference data by benchmarking data with peers without revealing data sources and with encryption, is calling for banks to confirm places in its 2021 community by 18th December 2020. You can find out more and sign up by contacting community@danie.tech....

EVENT

Data Management Summit Virtual

The Data Management Summit Virtual brings together the global data management community to share lessons learned, best practice guidance and latest innovations to emerge from the recent crisis. Hear from leading data practitioners and innovators from the UK, US and Europe who will share insights into how they are pushing the boundaries with data to deliver value with flexible but resilient data driven strategies.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...