Responsibility for banking supervision will, at the earliest opportunity, be transferred from the Bank of England to the Securities and Investments Board. The transfer will be effected under the Bank of England Bill which will also take through the legislation to enact the monetary policy changes which I announced two weeks ago. As agreed between us, the Treasury, the Bank and the SIB will work closely together over the coming months on the details of the transfer. This will be an important step in the establishment of a single regulatory body to oversee all the financial markets and to bring the regulatory structure much closer to the way in which today's commercial markets and companies are organised and managed on an integrated basis. I am also announcing the Government's plans for reform of the financial services regulatory structure.
Financial services lie at the heart of a modern, dynamic economy.
The effectiveness and competitiveness of all our industries depends on the availability and efficiency of the increasingly wide array of financial products and services. The standard of living of all of us depends on them, particularly in retirement. Financial services are often complex and long term. Products, markets and advice must therefore be fair, honest, transparent and command confidence. This division is inefficient, confusing for investors and lacks accountability and a clear allocation of responsibilities.