Bank of England shoulders responsibility for prudential regulation

Last night in his first Mansion House speech, UK Chancellor of the Exchequer George Osborne confirmed what many in the City had expected for months – that he will abolish the Financial Services Authority (FSA) and put responsibility for both macro- and micro-prudential supervision into the hands of the Bank of England.

"I can confirm the government will abolish the tripartite regime, and the Financial Services Authority will cease to exist in its current form," said Osborne. "We will create a