Hung parliament likely to mean extra FSA powers - AIFA

Scott Sinclair
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A coalition government of Labour and the Liberal Democrats would likely lead to strengthened powers for the FSA and the full implementation of the Financial Services Act, AIFA says.

The UK has its first hung parliament since 1974 after no party secured an overall majority, although the swing to the Conservatives has been significant. AIFA director general Chris Cummings says Labour wants a strengthened role for FSA while the Lib Dems wants a reinforced role for the tri-partite system, meaning a compromise would likely be sought. A Conservative minority government, described by AIFA as the "next most likely scenario" would likely see the Tories follow through with plans to abolish the City regulator and form a Consumer Protection Agency in its place. However, it a...

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