Mortgage News
FSA to spend £5m on external analysts
The Financial Services Authority (FSA) and its successors are to spend as much as £5m on hiring outside consultancies to carry out economic analysis.
The City regulator, which later this year will be split into two, is looking for external economists to carry out a range of analysis.
Tender documents seen by the Sunday Telegraph show that the FSA – on behalf of one of its successor agencies the Financial Conduct Authority (FCA) – is looking for as many as five consultancies.
Those selected will be placed on an FCA roster to carry out work that includes economic analysis of market failures, competition analysis, and the cost-benefit of regulation.
As well as working for the FCA, those chosen may be used by the Bank of England, and the Prudential Regulatory Authority (PRA).
Once the Financial Services bill has been passed later this year, the FSA will split into the FCA, to deal with market conduct and general supervision, and the PRA, to deal with systemic issues and capital levels at major banks.
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The value of the work, according to the tender document, will be between £2m-£5m over the four-year life of the “framework agreement for the provision of economic consultancy services”.
A spokesman for the FSA declined to comment to the Sunday Telegraph.