New UK financial regulator to unveil plans

21 March 2013

Britain's financial sector is set to learn details of the country's incoming regulatory regime later today (21 March).

The new watchdog - the Financial Conduct Authority (FCA) - will be launched on 1 April and is scheduled to unveil its plans for the industry, with analysts anticipating a much tougher regime than the current system, Reuters reports.

Under the terms of the regulatory reforms, the Financial Services Authority - which has been in operation for 11 years - will be scrapped as the Conservative-Liberal Democrat alliance seeks to tighten up rules and guidelines in the wake of the global economic crisis.

The FCA will take responsibility for the enforcement of these regulations and for dishing out punishment for any breaches, while a new Bank of England division will be set up to ensure financiers are holding sufficient levels of capital.

Calum Burnett, financial services lawyer at Allen & Overy, commented: "I suspect the FCA will want to shift up another gear from where they are at the moment and we will see fines go up."

By Gary Cooper

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