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Concerned by fusion of the OFT with the Competition Commission has raised to scope of application of the new authority of enforcement powers.?Photo: Alamy

In a document of the Department for business, the city of London Law Society presents three major concerns about the planned new competition regime, the centrepiece of the proposed merger of the OFT with the Competition Commission.

Society, whose members include Norton Rose, Clifford Chance, Allen & Overy, slaughter and may agree that a single authority would bring efficiency gains, but he wished to ensure that the Government retains some of the benefits of a system at two levels, such as having a "new pair of eyes" to examine a case.

Michael Grenfell, a partner at Norton Rose, said: "it is important that you do not have the same people who started the survey giving judgment on it, just as you would like make a police providing the verdict on a flight officer."

The company recommends that the "ultimate decision-making" should rest with a new "Executive panel", "independent spirit persons", who played no role in the investigation. Companies would be allowed to submit observations to the Commission before that it had taken the final decision as they do today to the commission.

A second concern is over the enlarged community, enforcement powers to fine companies - such as the 112 million penalty of ￡ handed over to Imperial Tobacco - or exclude principals for infringement of competition law.

The company pointed out how the OFT investigates an offence alleged, continues the alleged violation via a statement of objections, namely rules if it actually occurred after the performances of the company and levies sanction.

"The OFT is all." "It is investigator, Prosecutor, judge and a jury", said Dr. Grenfell. "We believe that that is consistent with modern principles of fairness and justice.

The company proposes instead a "clear separation between the investigation and continued on the one hand and another arbitration" - given that the United States Canada Australia, the Ireland.

Third concern of society is the proposal that all companies involved in a merger are obliged to alert the competition authority. At the present time, Britain allows companies to accept the risk if questions of competition - fusion knowing that, if the authorities decided, they could end up as forced sellers.

Dr. Grenfell said: "we believe that it imposes an unnecessary regulatory burden on business." They should have the possibility to take the risk. ?

The Government should publish a document for consultation in February on proposed reforms of the competition.

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A number of senior bankers, including John Varley, Barclays, outgoing Executive chef wrote Treasury to express their concerns about the planned reform of the financial regulation in the UK, for consultation prior to the separation of the Financial Services Authority.

At the same time, the five members of the independent Commission on banks (LAC) also wrote to George Osborne, the Chancellor, "underlines the importance of the promotion of competition in the financial regulatory framework".

IBC, chaired by Sir John Vickers, believes that the protection of consumers and markets Authority — rather than the BoE - should have an "obligation to promote primary effective competition".

Many of the concerns expressed by senior Treasury Board on rehabilitation centre bankers sweeping new powers to the Bank of England, to oversee the new prudential regulation authority (PRA) which will be the responsibility of the FSA supervising the banking system of the United Kingdom.

"As currently constructed there is a lack of independent oversight of the PRA we find disturbing."He is certainly right that elected maintain a key role in the supervision of the financial system, said a source with a large Bank of the United Kingdom.

There are repeated warnings since the Government first announced the dismantling of the FSA on a "responsibility" gap created by the changes, as well as the concentration of power, that it will create at the Bank of England.

Andrew Tyrie MP, Chairman of the Committee of selection of the Treasury Board, spoke on several occasions its fears on the involvement of discount so power organisation.En pursuant to the proposed changes, PRA will report to the Bank of England, and while this will have on its Board of Directors that they have no words to say in his revenge fonctionnement.En independent directors, the FSA has an appeal process to allow regulated companies to challenge decisions, something they can do in the new structure.Pas all banks are understood to be affected by changes and a source to a said they accepted the new structure and look to work closely with the authorities on how best to implement the changes.

Association (BBA British Bankers'), main banking UK trade body has warned the "risk of damage to the reputation of the United Kingdom for the maintenance of a stable and competitive regime", if more than last week was not make responsible for PRA.

Meanwhile, George Osborne, speaking at the meeting of the G20 in southern Korea has championed legislation that take advantage of. ￡ 2 of largest banks of the United Kingdom 5bn.

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