Rishi backs down in regulator row after Bank of England opposition
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Rishi steps down the ranks of regulators after Bank of England warns his scheme would undermine its independence
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The government last night slammed plans to give itself power over regulators – after the Bank of England warned they would undermine its independence.
Ministers had sought to introduce rules allowing it to veto decisions by financial regulators.
But the Financial Conduct Authority (FCA) and Bank of England Governor Andrew Bailey both strongly opposed the move.
Resistance: Ministers had sought to introduce rules allowing them to veto decisions by regulators. But the Bank of England and the FCA both strongly opposed the move
Yesterday, City Secretary Andrew Griffith said the move had been put on hold.
He said: “The government has decided not to proceed with the power of intervention at this time.”
Last week, Bailey reiterated his concerns about the move to the Commons’ Treasury Select Committee.
He told MPs that in order for the UK to compete as a leading international financial center it needs an effective legal and regulatory system and “we shouldn’t threaten that”.