The
Conservative Party has published, at the start of its conference in Birmingham, a policy document titled
"Reconstruction - our plan for a strong economy". The proposals are many and wide-ranging; they cover the tax system, consumer credit regulation, the housing market and the role of the
Bank of England and
Financial Services Authority. Amongst the proposals are the following (to quote directly from the report):
- Improve the system for regulating banks by asking the FSA to tackle irresponsible bonus structures. Institutions that use massive bonuses to encourage short-term reckless risk-taking will have to hold more capital to offset their higher risks.
- Improve the quality of regulation by matching the FSA’s new responsibilities with new funding. Financial institutions will have to contribute more funds and skilled secondees to the FSA so that the regulator is more equal to the regulated.
- Introduce more transparency into the regulation of complex financial instruments and off balance sheet vehicles.
- Make DBERR the clearing house across Whitehall for all legislation which has a regulatory impact.
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