Commenting, he said: “Even before the announcement of the new government last night there has been a lot of talk about the life and the future place of the FSA in the financial services industry.
“If there are to be changes made it will certainly take some time. We believe that the Conservative stance of putting macro prudential/economic issues back with the Bank of England is in the best way to go, as they are economists and are better at dealing with these issues. However micro issues such as conduct of business and consumer protection should be kept with a regulator who has the skill set and expertise to control these. The blend and approach of two sets of eyes will be a more efficient one and will be the most effective approach which will utilize the strengths of each of the bodies. Even if the name of the FSA does change, the agency will still exist in some form as a ‘consumer protection agency’. “
