Regulating the banks: 2014 heralds a tough new approach

The start of 2014 has seen the financial regulators begin formal investigations into the troubled Co-operative Bank, following discovery of the £1.5bn deficit in its balance sheets in June 2013 and allegations surrounding its chairman, Paul Flowers. While the Prudential Regulation Authority (PRA) will consider former senior managers’ roles, the Financial Conduct Authority (FCA) will look at decisions and events to June 2013. No further details of the investigations have been released. Alongside three reviews internal to the Co-op, the Treasury will also undertake an independent review via powers under the Financial Services Act 2012 (FSA 2012), examining the actions of relevant authorities, the institution itself, prudential issues, governance and acquisitions. However, this ‘will not start until it is clear that it will not prejudice any actions that the relevant authorities may take, including the potential FCA and PRA enforcement investigations’.

More widely, banking structural reform looks likely to dominate regulation in the financial services sector in 2014. The government’s Financial Services (Banking Reform) Act came into force in December 2013, implementing recommendations from the Independent Commission on Banking and Parliamentary Commission on Banking Standards. Four key areas form the focus of the ‘transformation’ attempts…

Click on the link below to read the rest of the Walker Morris briefing.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from Walker Morris

View more briefings from Walker Morris

Analysis from The Lawyer

View more analysis from The Lawyer


Kings Court
12 King Street

Turnover (£m): 42.50
No. of lawyers: 188