As part of the overhaul, the Financial Services Authority’s banking supervision and consumer protection divisions will be split into separate regulators. By dividing the work between the Financial Conduct Authority and the Prudential Regulatory Authority, British officials are acknowledging that regulators became overstretched.
With around 4,000 regulators to police all of Britain’s financial industry, analysts say the Financial Services Authority routinely shifted its emphasis from guarding against major financial shocks to protecting consumers against potential fraud.
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