Concerns over duplication go unaddressed
THE government has said that concerns over potential duplication and confusion between the new regulatory bodies it is creating will have to be resolved once they are established.
In a white paper and accompanying draft legislation published yesterday, the Treasury said that a worry about duplication was one of the most common responses in its consultation on its initial proposals to create three new regulatory bodies.
But the Treasury concluded: “The government does not believe that it would be appropriate to set out operational matters for the Prudential Regulation Authority and Financial Conduct Authority in primary legislation.”
Instead, the new bodies will be given a mandate to coordinate their actions so as to minimise the burden for firms once they are established.
“Over time, the regulators will develop their own regulatory culture and approach to engagement with firms,” the white paper says.
Those consulted on the previous draft had suggested that the legislation established a “shared gateway” that would be firms’ primary point of contact with regulators, but the Treasury chose not to pursue the idea.