France launches new financial regulatory body

FRANCE formally launched yesterday a new regulatory body to supervise its financial sector, as governments around the world look to strengthen their regulatory systems to prevent a repeat of the credit crisis.

Bank of France Governor Christian Noyer was named as the new head of the ACP (Autorite de Controle Prudentiel) banking and insurance regulatory body.

The ACP, which combines the previously separate banking and insurance watchdogs, will work alongside the French AMF stock market regulator. "This will create a more efficient regulatory system for the future," said French Economy Minister Christine Lagarde, who held a joint news conference with Noyer to announce the launch of the ACP body.

British politicians are also exploring reforms to its financial regulatory structure. Its existing "tripartite" committee of the Treasury, Bank of England and Financial Services Authority (FSA) was widely criticised for failing to spot the risks which forced Britain to nationalise or take major stakes in Northern Rock, Lloyds and RBS banks.Reuters