Twin Peaks Revisited - Centre for Competition Law and Policy

Justification of UK reforms
� Improved focus on the objectives of regulation: aim to
create a system in which risks to the financial system
are at the forefront of supervisory action.
� Improved crisis management arrangements: as a
subsidiary of the Bank of England, PRA will have close
links with the central bank. BoE in the lead in most
crisis episodes.
� Improved arrangements for dealing with TBTF. Focus
on system stability, not on preventing the failure of
individual firms.