Britain reshuffles financial regulation system

Britain has reformed its financial regulation system with the central bank's powers enhanced. Under the reform plan, the Financial Services Authority (FSA) is being replaced by three new bodies - the Financial Policy Committee (FPC), the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). All the three units are operating under the Bank of England, making it the most powerful central bank in the world. The new system comes instead of the so-called tripartite structure of the FSA, the Treasury and the Bank of England, which was blamed for being "asleep at the wheel" during the 2008 financial crisis. According to local media reports, from April 1, PRA will ensure the stability of financial services firms and be part of the Bank of England. The FCA is now the City's behavioral watchdog. The Bank of England has gained direct supervision for the whole of the banking system through its powerful FPC.