About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

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

Subscribe to our newsletter

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.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: The time is now for buy-side firms to re-evaluate their approach to data management

Increased cost pressures, rising volumes of data, and the challenges of legacy systems are pushing buy-side firms to re-evaluate current approaches to data management. The aim is cost-effective, optimised data management that can provide flexibility and scalability, support various data types including ESG data, and ensure headroom for development in line with business objectives. Achieving...

BLOG

FinTech Specialists Retool as Clients Clamour for ESG Services

Growing demand for sustainability disclosures from investors and regulators has seen service providers to financial institutions retool and create new products for their clients. While solutions that enable corporates to identify and report their own ESG metrics have entered the market in large numbers over the past few years, there has been a quieter expansion...

EVENT

Data Management Summit London

Now in its 13th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

Regulatory Data Handbook 2022/2023 – Tenth Edition

Welcome to the tenth edition of A-Team Group’s Regulatory Data Handbook, a publication that has tracked new regulations, amendments, implementation and data management requirements as regulatory change has impacted global capital markets participants over the past 10 years. This edition of the handbook includes new regulations and highlights some of the major regulatory interventions challenging...