{"id":1614687,"date":"2022-08-18T12:39:06","date_gmt":"2022-08-18T16:39:06","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1614687"},"modified":"2022-08-18T12:39:16","modified_gmt":"2022-08-18T16:39:16","slug":"uks-liz-truss-would-review-financial-watchdogs-roles-says-source","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/uks-liz-truss-would-review-financial-watchdogs-roles-says-source\/","title":{"rendered":"UK\u2019s Liz Truss would review financial watchdogs\u2019 roles, says source"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fuks-liz-truss-would-review-financial-watchdogs-roles-says-source%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1614687&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Elizabeth Piper and Huw Jones<\/p>\n<p>LONDON (Reuters) -Liz Truss, the front-runner to become Britain\u2019s next prime minister, wants to examine the roles of the country\u2019s three financial regulators as part of a review, a source close to her leadership campaign said on Thursday.<\/p>\n<p>Provided she wins the contest, Truss is expected to examine the role of the Financial Conduct Authority (FCA), the Bank of England\u2019s Prudential Regulation Authority (PRA), and the Payment Systems Regulator (PSR).<\/p>\n<p>\u201cNo decisions have been made on the future of regulators,\u201d the source said, asking not to be named. \u201cShe\u2019s clear that there has not been enough focus on economic growth.\u201d<\/p>\n<p>The FCA, the Bank of England and the PSR declined to comment. The Financial Times first reported the story.<\/p>\n<p>Truss, foreign minister, and former finance minister Rishi Sunak are in a Conservative Party run-off to replace Boris Johnson as prime minister, with the result to be announced on Sept. 5.<\/p>\n<p>She has pledged to cut taxes to mitigate the impact of surging prices on households.<\/p>\n<p>Truss and her supporters have suggested the government should have a bigger role in how the Bank of England https:\/\/www.reuters.com\/world\/uk\/boes-bailey-says-he-will-fulfill-his-term-whoever-next-uk-pm-is-2022-08-05 operates as inflation surges to above 10%, five times more than the BoE\u2019s target level.<\/p>\n<p>BoE Governor Andrew Bailey has said independent regulators are part of London\u2019s standing as a global financial centre.<\/p>\n<p>The FCA, under its chief executive Nikhil Rathi, is undergoing an internal revamp following its botched handling of London Capital &#038; Finance, an investment firm that collapsed, leaving taxpayers with the compensation bill.<\/p>\n<p>The PRA is under pressure from insurers to allow them to invest more in infrastructure as part of a post-Brexit reform of Solvency II capital rules inherited from the European Union.<\/p>\n<p>A financial services and markets bill put before parliament last month gives the FCA and PRA a new secondary objective of aiding economic growth and the financial sector\u2019s competitivenes, but some firms say it does not go far enough.<\/p>\n<p>The PSR, operational since 2015, is under pressure from lawmakers to resist moves by Visa and Mastercard to raise fees on users of their payment networks.<\/p>\n<p>SINGLE PEAK?<\/p>\n<p>Britain previously had one main financial regulator, the Financial Services Authority, which was scrapped after undercapitalised banks had to be bailed out by taxpayers in the 2007-09 global financial crisis.<\/p>\n<p>This \u2018twin peaks\u2019 approach saw the creation of the FCA to regulate conduct, and the PRA and the BoE to ensure banks and insurers hold enough capital.<\/p>\n<p>Merging the regulators would be potentially be a long and difficult undertaking.<\/p>\n<p>\u201cWhat possible benefit this last would be to anyone is a mystery to me,\u201d Simon Gleeson, a partner at Clifford Chance law firm, said. <\/p>\n<p>Rupert Harrison, portfolio manager BlackRock, said the need to split conduct and prudential supervision had been an important lesson from the financial crisis and had been applied around the world.<\/p>\n<p>\u201cPlus if the lender of last resort isn\u2019t intimately familiar with balance sheets thanks to being the prudential supervisor, you get problems,\u201d Harrison said in a tweet.<\/p>\n<p> (Reporting by Elizabeth Piper and Huw Jones, editing by Barbara Lewis)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/?attachment_id=2738963\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/08\/tagreuters.com2022binary_LYNXMPEI7H08J-VIEWIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI7H08J-VIEWIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Elizabeth Piper and Huw Jones LONDON (Reuters) -Liz Truss, the front-runner to become Britain\u2019s next prime minister, wants to examine the roles of the country\u2019s three financial regulators as<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1614687","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1614687","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1614687"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1614687\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1614687"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1614687"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1614687"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}