Following the banking crisis, the Chancellor of the Exchequer asked Lord Turner, in his capacity as Chairman of the Financial Services Authority ("FSA"), to review and make recommendations for reforming UK and international approaches to the way banks are regulated. The Review sets out a wide-ranging series of changes that are needed to banking regulation and associated supervisory practice. It states that in some areas the FSA will take action on its own, but in others international agreement is needed. In particular: fundamental changes are needed in the regulatory approach to capital, liquidity and accounting; there needs to be a system-wide approach to identify and deal with macro-prudential risks, to complement stronger micro-prudential supervision of individual firms; changes need to be made to the scope of regulation to make sure that the economic substance of activities are regulated, not the legal form; and the international framework for the regulation and supervision of cross-border banks needs strengthening in the light of the crisis. As part of this the Review recommends a new European body that will be both a standard setter and overseer in the area of supervision.