Regulator may need to be beefed up, warns BBA

INDUSTRY group the British Bankers’ Association has warned that the new system of financial regulation may need to be bolstered once the Financial Services Authority is scrapped.

The BBA said money transmission and credit must continue “without a hiccough” in the event that banks’ so-called living wills – a blueprint of how they could be broken up if they run into trouble – have to be enacted.

A spokesman said: “We need to have a regulator which has the strength and depth to oversee this and while the FSA has recently needed to recruit we trust the system will settle down as regulation completes its move to the Bank of England.”

The Bank and a series of new authorities are set to take on regulatory powers when the FSA is disbanded in 2013.