26 May 2010

UK bank regulation reform revealed in Queen's Speech

12:16 pm on 26 May 2010

Financial regulation in Britain will be put back in the hands of the Bank of England under a proposed Financial Reform Bill announced in the Queen's Speech.

It will abolish a tripartite regulation system that Labour introduced in 1997, in which responsibility was shared between the Bank of England, the Financial Services Authority and the Treasury.

However, there was no mention of a tax on bank profits despite earlier reports.

The proposed reform is one of 22 bills announced in the Queen's Speech on Tuesday, setting out what the new coalition government hopes to achieve over the next 18 months.

The BBC reports Conservatives have long been in favour of getting rid of the FSA and giving the Bank of England responsibility for maintaining financial stability.