Financial Conduct Authority to be denied extra powers

The government has rejected a plan to give the City watchdog greater powers despite a string of scandals that have exposed the limits of the regulator’s influence. The Financial Conduct Authority is facing growing scrutiny of its so-called regulatory perimeter, which defines the scope of the watchdog’s purview.

The influential Commons Treasury committee in August suggested that the regulator be granted formal powers so that it can recommend to the government changes to its perimeter, to make it easier for the authority to intervene to protect investors and businesses from unregulated activities. However, the committee disclosed yesterday that the government had rejected the proposal because it believes that decisions about the perimeter should stay with ministers.

Source: The Times
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