City has new watchdogs to avert fresh financial crisis

The City of London has not one but three new regulators from today. The Financial Services Authority (FSA), after a rocky 12 years as regulator, is being split up. The consumer arm is to become the Financial Conduct Authority and will be charged with combating mis-selling and banks acting to the detriment of customers, while oversight of balance sheets and liquidity of financial institutions will fall under the remit of the new Prudential Regulation Authority within the Bank of England. Both the FCA and PRA will sit below the newly formed Financial Policy Committee.

Katja Hall, chief policy director of the CBI, said: "Stronger regulation and supervision is vital if we are to avoid another financial crisis."