The UK government is proposing radical changes to the financial services regulatory framework. In this article we consult with leading financial services practitioners to gauge their reactions to the proposals set out in HM Treasury's July 2010 consultation paper.

The article considers potential flaws in the proposed system, in particular the prospect for some firms of regulation by two separate regulatory bodies, and the likely impact on both regulated firms and regulators. It also considers whether the new model will adequately address flaws identified in the current system.

For more information on the government's proposals, see Practice note, Hot topics: New UK financial services regulatory structure.