17th February 2011
The Guardian reports that the tougher regulatory system, which comes into force late next year when the Financial Services Authority is broken into three new bodies, will include the power to ban products or limit their sale for up to 12 months.
Mark Hoban, financial secretary to the Treasury, was reported as saying: "It is a radical reform but the lesson of the financial crisis is that you need to have proper focus and clear mandates and the mandates need to be underpinned by the powers to do the job."
The new system will come into force next year when the FSA will be replace by a a consumer champion and two other regulators that will monitor the banking system and insurers.
On Citywire the power of the current regulator comes under scrutiny.
It reports that the Financial Services Authority (FSA) has said it must seek permission from bankers before disclosing details of their remuneration to the government, apparently the watchdog cannot force them to disclose the information.