Financial regulator to be axed under Tory rule

Mon, 20 Jul 2009 | By Camille Alarcon

The party’s finance spokesman George Osborne is expected to make a full outline of its plans later today (July 20) in what is expected to be the most comprehensive plan yet for regulating the financial system.

He is expected to say that the financial regulator’s responsibilities will be split between the Bank of England and a new consumer protection agency.

On the party’s website, Osborne said: “Given everything that has happened, it would be bizarre to stick with a system of regulating the banks that failed so spectacularly.”

The proposed changes would see the dissolution of the system introduced 12 years ago by Prime Minister Gordon Brown when he was finance minister. Responsibility is currently split between the FSA, the Bank of England and the Treasury.