FSA doesn’t want watered down banking proposals

The National Chairman of the FSA, or Federation of Small Businesses, has urged the Prime Minister not to water down the proposals that have been made for bank reforms. John Walker has written an open letter to David Cameron, urging him to carefully consider the findings in the ‘Independent Commission on Banking’ report, which is due to be published.

The report has pledged to reform both the structure and the regulation of the banking system, but Mr Walker believes that the Government many ignore the report’s recommendations, and make their decision based in the views of a small but influential group. The banking community has claimed that any reforms could have a detrimental effect on the already fragile economy, but a survey showed that 71% were in favour of action.

This survey was held amongst influential figures in the city and they feel that to take no action would be a big mistake on the Governments part. Mr Walker has commented on the rumours, saying that they had been promised a radical reform but it now appeared that, if they were lucky, they would get a ‘light’ touch regulation after 2015, and this simply wasn’t good enough.