They may still have the wrong idea, but at least they are going about it in the right way. The UK Conservative party announced broad plans to abolish the Financial Services Authority in July, suggesting giving most of its authority to the Bank of England. Now they have started to ease the fears about a transition to this new model by explaining how they propose to make the switch.

The Tories have revealed that, should they win the general election that is due by next summer, the whole FSA would be merged into the Bank, and the proposed new consumer protection agency would be spun off at a later date. The Tories have yet to decide who will conduct market regulation.