To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the decision by regulators not to consider the effect of demutualisation of building societies and friendly societies on the financial crash of 2007-08; and if he will make a statement.
The Government recognises the vital importance of having a strong and stable financial system. The Government also recognises the value that building societies, friendly societies and other mutually owned organisations bring to the financial services sector.
The Prudential Regulation Authority (PRA) is responsible for the prudential supervision of the UK banking sector, including building societies, whilst the Financial Conduct Authority (FCA) is responsible for supervising the conduct of financial services firms operating in the UK. The FCA and PRA are operationally independent of Government and and the Treasury has no general power of direction over the regulators. The Government has not specifically examined the effect of the regulators’ decisions over assessing the impact of demutualisation of building societies and friendly societies on the financial crash of 2007-08.