Members of the Treasury Select Committee in the UK's House of Commons have called for the Financial Conduct Authority (FCA) to be split into two units; one with an enforcement role monitoring the behaviour of banks while the other supervises the wider financial services sector.
The suggestion, initially put forward in 2014, comes in the wake of the Green report on the collapse of HBOS in 2007, which was published last year. MPs believe the report shows that the sheer size and remit of the FCA and its predecessor, the Financial Services Authority, meant investigations into banking were not thorough enough.
"A separate body would bolster the perception of the enforcement function's independence, and provide the regulators with greater clarity over their objective," said Andrew Tyrie MP, chairman of the Treasury Select Committee. "The case for separation merits serious re-examination. The Treasury should appoint an independent person to undertake a review."
Meanwhile, the FCA published the final findings of its study of the credit card market this morning, setting out a package of remedies to enable consumers to shop around more effectively, budget more efficiently and, where appropriate, repay debt faster.
The final findings follow the interim report, which was published last year and expressed concern about the scale of potentially problematic debt. Further analysis for the final report suggests that companies do not have strong incentives to help customers out of persistent credit card debt. Remedies, to be implemented after a period of consultation, will include FCA rules and industry-led actions.
Santander Consumer USA has delayed its 2Q16 earnings as it is currently in talks with its current and its previous accountants about discount accretion accounting and credit loss allowance methodologies following the discovery of a discrepancy earlier this month, according to a Credit Suisse note. Earlier this year, the unit delayed filing its 10-K form for the 2015 financial year before finally doing so at the end of March.
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