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Darling plans strong FSA

<div>CHANCELLOR Alistair Darling is set to unveil a new Banking Act which will strengthen the Financial Services Authority (FSA), in a move that flies in the face of Bank of England governor Mervyn King&rsquo;s calls for the central bank to be given greater powers.<br /><br />Darling wants the FSA to assume the role of overseeing financial stability, a function for which the Bank currently has partial responsibility, and is preparing to introduce legislation before the end of the year to force the change through.<br /><br />Under the proposals, the FSA would gain the power to question the behaviour of banks and enforce changes to corporate strategy if it believes a lender&rsquo;s practices carry an inherent risk to the economy.<br /><br />Darling&rsquo;s plans run contrary to the recommendations of King and shadow chancellor George Osborne, both of whom want the Bank to dominate the regulatory system.</div>