Do the Government’s proposals appropriately assign roles and responsibilities between the different regulatory institutions?
5.1.1 This report shows that the ‘overlap’ of functions does not clearly and appropriately assign roles and responsibilities between the PRA and the CPMA in the context of accountability. If the approach is to be adopted exceedingly clear boundaries will be needed and a demarcation of responsibilities set out. There also needs to be clear guidelines and timescales for referrals and co-operation between regulators. If this is not the case there will be constant litigation in the Courts. 5.2 Is it appropriate for the PRA and the CPMA to adopt judgements-based approach to financial regulation and supervision? 5.2.1 It is questionable whether the staff transferring to the PRA and CPMA from the FSA currently have sufficient skills to undertake this type of regulation. Whilst judgement led regulation will reduce the size of any rulebook firms must operate within, it opens regulation to interpretation (and therefore challenge). Whilst adopting this approach could make regulation simpler, it e
