FACTBOX-UK govt plans new financial regulatory bodies

June 17 (Reuters) - The British government this week announced the biggest shake-up of the regulatory landscape in 13 years, pledging to give the Bank of England (BoE) ultimate control over financial supervision.

The Financial Services Authority (FSA), the current supervisor, will cease to exist in its current form.

For a story on the announcement, click: [ID:nLDE65G079]

Below are the details of the new regulatory bodies the government plans to establish, all of which will be accountable to parliament, and the proposed process of transition.

FINANCIAL POLICY COMMITTEE (FPC)

* What?

Established within the BoE, it will be responsible for looking across the economy at macroeconomic and financial issues that may threaten stability.

The FPC will have power to require the new Prudential Regulation Authority to implement its decisions by taking regulatory action with respect to all firms.

* Who?

It will be chaired by the BoE governor and its membership will include the BoE's deputy governors for monetary policy and financial stability, a new deputy governor for prudential regulation, the chair of the new Consumer Protection and Markets Authority. It will also have external members and a representative from the finance ministry.

PRUDENTIAL REGULATION AUTHORITY (PRA)

* What?

A subsidiary of the BoE, this body will conduct prudential regulation of sectors such as deposit-takers, insurers and investment banks

* Who?

It will be chaired by the BoE governor. FSA chief executive Hector Sants will be PRA chief executive, taking on the new role of deputy governor for prudential regulation. The BoE's banking executive director, Andrew Bailey, will be his deputy.

The central bank's deputy governor for financial stability will also sit on the PRA board.

CONSUMER PROTECTION AND MARKETS AUTHORITY (CPMA)

* What?

Taking over the FSA's responsibility for consumer protection and conduct regulation, its primary objective will be promoting confidence in financial services and markets.

The CPMA will regulate the conduct of all financial service businesses, both retail and wholesale, and ensure financial services and markets are transparent in their operation.

It will also be responsible for the Financial Ombudsman Service and oversee the newly created Consumer Financial Education Body and, working closely with the FPC and PRA, will oversee the Financial Services Compensation Scheme.

OTHER:

The government said it would also be creating a single agency to take on the work of tackling serious economic crime, which is currently dispersed across a number of government departments and agencies.

PROCESS:

The government plans to pass the necessary primary legislation to establish these bodies within two years. In the meantime, an interim FPC will be set up by the autumn.

A consultation will be carried out before the bodies are legally established. The government plans to publish a detailed policy document for public consultation before parliament's summer recess.

(Compiled by Kylie MacLellan; editing by Simon Jessop)