Financial Secretary Mark Hoban said the FSA’s successor body, previously known as the Consumer Protection and Market Authority (CPMA), will also be able to ban products or limit their distribution for up to 12 months, the Financial Times reports.
He also insisted it will be able to penalise banks, brokers and individuals pre-emptively, before the target can present its case to an internal appeal body.
Hoban said: “It is a radical reform but the lesson of the financial crisis is that you need to have proper focus and clear mandates and the mandates need to be underpinned by the powers to do the job.”
The FCA will also be tasked with increasing and fostering competition within banking and other financial services.
Meanwhile, Hoban is anticipating the new Prudential Regulatory Authority (PRA) will take a significantly more activist approach to supervising banks than the FSA.
He added: “One of our concerns has been that intervention has been left too late. The PRA should be acting earlier.”
Hobal also confirmed the National Audit Office will be given the power to examine and report on the efficiency and effectiveness of the new financial regulators.
