Prime Minister Gordon Brown promised on Sunday to strengthen Britain's financial watchdog, giving it more power and resources to supervise the country's financial sector.
Brown's remarks come just a day after finance ministers from the G20 group of industrialised and developing countries vowed to take "whatever action is necessary" on the world economic slowdown, after talks preparing for a key summit on fighting the crisis next month.
"The world has changed beyond recognition not just in the past 10 years, but in the past 10 months too," the premier, himself a former finance minister for a decade, wrote in the Sunday Telegraph newspaper.
"Our system for financial regulation must change with it. This means a new tougher approach, addressing the new challenges, with a reformed, tougher and better-resourced Financial Services Authority (FSA) at its core."
Brown said other measures that needed to be taken included bringing hedge funds and other investment funds under the FSA's supervision, holding board-room directors to account, greater international co-operation and a new pay and bonus structure.
He said there also needed to be better monitoring of the effect of an institution and its assets on the financial system, and stronger cross-border supervision.
"While the 1997 supervisory system was right for the circumstances we faced then, it is now clear that the detailed regulation of financial markets across the world did not keep up with the pace of change in the global economy," he wrote.
Brown's remarks come just a day after finance ministers from the G20 group of industrialised and developing countries vowed to take "whatever action is necessary" on the world economic slowdown, after talks preparing for a key summit on fighting the crisis next month.
"The world has changed beyond recognition not just in the past 10 years, but in the past 10 months too," the premier, himself a former finance minister for a decade, wrote in the Sunday Telegraph newspaper.
"Our system for financial regulation must change with it. This means a new tougher approach, addressing the new challenges, with a reformed, tougher and better-resourced Financial Services Authority (FSA) at its core."
Brown said other measures that needed to be taken included bringing hedge funds and other investment funds under the FSA's supervision, holding board-room directors to account, greater international co-operation and a new pay and bonus structure.
He said there also needed to be better monitoring of the effect of an institution and its assets on the financial system, and stronger cross-border supervision.
"While the 1997 supervisory system was right for the circumstances we faced then, it is now clear that the detailed regulation of financial markets across the world did not keep up with the pace of change in the global economy," he wrote.
No comments:
Post a Comment