Of the changes announced in 2010, the Financial Services Authority will be incorporated into the Prudential Regulation Authority and the Financial Conduct Authority, Compliancy Services reports.
The Bank of England has supported a report on the scandal involving manipulation of the London interbank offered rate—commonly known as Libor that acknowledges that the U.K.’s central bank did not have regulatory authority for Libor during the time period it is said to have been manipulated.
Additionally, the central bank said that it will assume responsibility for supervision of financial institutions beginning 2013 after the Financial Services Bill takes effect.
“The report calls for a much stronger governance framework for the BoE,” the bank said, according to Compliancy Services. “Such a framework is enshrined in the Financial Services Bill.”
The PRA, which will be headed by Hector Sants, will be responsible for oversight of financial institutions as well as decisions involving regulations and the suitability of banking executives.
The FCA will oversee retail and wholesale financial market regulation and their accompanying infrastructures. Martin Wheatley, who is conducting a government-ordered review of the Libor scandal, will head the FCA as chief executive, Compliancy Services reports.
The U.K.’s Treasury Select Committee addressed concerns related to the “box-ticking” culture at the FSA. The Bank of England, in response to calls by the Treasury to review note-keeping procedures, said that it has systems in place for monitoring conversations between bank officials and those outside of the bank.