Many Hands Make Light Work: The Tripartite Arrangement as Part of the Legislative Reforms to Banking Legislation in the UK - a Spectrum of Views from a Spectrum of Institutions
Many Hands Make Light Work: The Tripartite Arrangement as Part of the Legislative Reforms to Banking Legislation in the UK - a Spectrum of Views from a Spectrum of Institutions.
Nigel Clayton
When the government transferred regulatory and prudential responsibility away from the Bank of England to the FSA the emphasis upon regulating banks was put into the background. The FSA took a very limited approach in supervising the risk that bankswere entering into. When the crisis affecting the liquidity of banks worsened after the collapse of Lehman Brothers, this approach on the part of the FSA was shown to be questionable. The collapse of Northern Rock necessitated emergency legislation. The Banking Act 2009 introduced a special resolution regime giving additional protection to depositors. Such protected depositors are given a protection analogous to those possessed by beneficiaries of a trust. With such increased protection for depositors there is the requirement of increased and better regulation to protect the position of taxpayers. The Banking Act 2009 and the Financial Services Act 2010 have been introduced in order to give the tripartite authorities clear powers and tools and to make more certain the various roles of each of the tripartite authorities. The Financial Services Act 2010 emphasises the importance of financial stability and makes that a specific objective of the FSA. The focus of this article is on the tripartite authorities and their position in relation to the above.
Law and Financial Markets Review, Vol. 4, No. 4, July 2010: 366-393.