FSA's enforcement powers under scrutiny

The FSA may still lose its enforcement powers to a new force that will take over from the Serious Organised Crime Agency in 2013.

According to documents seen by The Times, Home Secretary Theresa May is considering passing the FSA’s enforcement powers to the new National Crime Agency.

The Home Office is already planning to break up the Serious Fraud Office to give the National Crime Agency responsibility for investigating large, complex fraud and corruption cases, with the Crown Prosecution Service bringing them to court

The report says that May is looking at taking the powers away from the financial regulator, despite Treasury plans for the FSA’s enforcement powers to pass on to the Financial Conduct Agency when it takes over markets and consumer protection functions next year. The report says the shake-up by the Home Office may result in a turf-war with the Treasury, which has reiterated that enforcement would stay within the FCA remit.

Interim head of the FSA conduct unit Margaret Cole fought to keep control of the enforcement team once its prudential regulation functions transfer to the Bank of England.

More concerns for FSA's new regulatory regime

Around a quarter of retail investment management companies in the UK will miss the deadline for the Financial Services Authority (FSA) Retail Distribution Review (RDR), it has been stated.

Deloitte reports that 27 per cent of polled firms are still developing their strategic response to the review, which is aimed at improving consumer confidence.

The survey, conducted at a recent industry conference, revealed that just 13 per cent of affected companies have taken steps to engage senior management and people working incorporate finance jobs on the issue.

Only 11 per cent said they were currently implementing plans relating to the RDR, while just six per cent expect to meet the FSA-imposed compliance deadline of January 1st 2013.

Deloitte RDR lead partner Andrew Power said there is "still a lot to do" for many companies.