The government intends to merge the regulator’s enforcement division with the Serious Fraud Office and part of the Office of Fair trading.
However, lobbying by affected groups and differences between government departments may mean the FSA will retain its enforcement powers and become part of a planned new Consumer Protection and Markets Authority, the Times reports.
Analysts say Margaret Cole, the FSA’s head of enforcement and financial crime, would like to run the new agency and take her division with her.
Mortgage rates may hit 14% within two years
Mortgage rates may climb to 14% within two years, financial experts warn.
The warning comes after a leading think tank warned the Bank of England may have to increase interest rates sharply – to as high as 8% – to choke off soaring inflation
Once lenders have added their profit margins, it could push the rates offered to home owners to 12 to 14%, according to personal finance website Moneyfacts, the highest since the recession of the 1990s.
The rates would be lower if current profit margins of 3.5% were added to interest rates of 8%.
Persimmon profits lifted by ‘strong’ spring sales
Homebuilder Persimmon has seen its first-half profits increase more than tenfold after a period of “strong sales” in the spring.
Persimmon reported a pre-tax profit of £101.4m in the first six months, up from a £9.8m profit a year ago.
It also said it would recommence paying a dividend to shareholders at the end of the year, after suspending the payment in 2009.
Revenues rose 27%, while its average selling price was 8.6% higher at £168,936. Completions increased by 16% to 4,657.
