The Financial Conduct Authority (FCA) is one of the successor agencies to the Financial Services Authority (FSA) and is currently expected to be established by end-2012.

The FCA’s focus will be to regulate both wholesale and retail financial firms providing services to consumers and to maintain the integrity of the U.K.’s financial markets.

The authority will have the power to ban unacceptable financial products and enforce the withdrawal of misleading promotions, among other regulatory powers.

Much like FSA, the FCA promises to protect consumers by promoting transparency and healthy competition in the financial sector while helping consumers make the right choices; but will it be able to succeed where the FSA arguably failed?

The official “Approach to Regulation” document on the Financial Conduct Authority’s objectives and powers (.pdf, 508 kb) sets out how the authority will approach the delivery of its objectives. However, MPs and experts alike are worried that the FCA will be “more of the same”.

Back in August of 2011, a parliamentary committee announced an inquiry into the accountability of the FCA to be published by the Autumn of 2011 and earlier this week (albeit admittedly a bit late) the Treasury Select Committee published a full-blown report into Financial Conduct Authority. This in-depth report contains a number of recommendations for the Government’s consideration ahead of the drafting and publication of the Financial Services Bill early in 2012.

Among the Treasury Committee’s most significant recommendations are that the FCA is properly accountable to Parliament and that tools are available to enable the required level of explanation from the regulator.

Commenting on the publication of the report, the Chair of the Treasury Committee, Andrew Tyrie MP, said:

“We need a fresh approach to regulation.

The plain fact is that the FSA did not succeed in protecting consumers from spectacular regulatory failures. The mis-selling of PPI and endowment mortgages are just two examples. The FSA is not only expensive, for which the consumer always pays, but many have told us that it has also become bureaucratic and dominated by a box-ticking culture.

The creation of the FCA is an opportunity to create something much better.

If we are not careful, the FCA will become the poor relation among the new institutions. But it is the one that will matter most to millions of consumers.”

Even though there are legitimate concerns, especially given the FSA’s recent mistakes, some experts hope that with careful planning and the Treasury Select Committee’s input the FCA will hopefully turn out to be less expensive and more efficient than the FSA in safeguarding the consumers’ interests.

Virgin money has announced their first two savings accounts since Virgin Money officially acquired Northern Rock plc on 1 January 2012.

The two new accounts, Virgin Easy Access Saver and Virgin Easy Access Cash ISA offer a competitive annual interest rate of 2.85% that remains the same regardless of how the account is opened. This means that customers will enjoy the same benefits whether they open their account online, via phone, post or through one of Northern Rock’s 75 branches. Both accounts require no notice to access funds and customers are required a minimum deposit of £1 up to a maximum of £100.000.

Arguably the most notable feature in both savings accounts is that they are not reliant on introductory bonuses that might confuse buyers. Simply put, the interest rate announced is not inflated for the first year and customers will not be faced with lower rates after that year has passed.

With that move Virgin Money shows that they want to promote long-term financial relationships with their customers as customers will not be baited with inflated introductory rates in the first place and will not be forced to search for other savings accounts after any introductory rates have expired.

Chief executive officer at Virgin Money Jayne-Anne Gadhia said: “These new savings products are designed to be simple, fair and transparent. They have an attractive headline rate, without a bonus, offering good value for customers”.

She continued: “There are no differences in rate whether the customer chooses an ISA or a standard savings account. What’s more, customers can choose to operate their account online, through a branch or over the telephone and still benefit from the same great rate.”

Meanwhile, the two new savings accounts have received positive reviews from financial experts and pressrooms alike.

The financial comparison website Moneyfacts.co.uk praised the two new accounts, awarding them with four out of possible five stars and placing them “comfortably within the top ten of similar products.”

Both accounts Virgin Easy Access Saver and Virgin Easy Access Cash ISA will be available from this Thursday in Northern Rock branches across the country.

Despite the adverse economic climate, positive factors such as the low interest rates offered in the market as well as the promise of safer mortgage lending rules from FSA contributed to house prices rising by a modest 1% in 2011, according to Nationwide, with London prices surpassing the 5% mark.

In reality, the 1% increase in house prices is overshadowed by annual inflation and this is expected to remain true for 2012.

But what will happen to property prices in 2012?

The uncertain economic situation in the EU means that house price changes will be difficult to predict and many property market experts and forecasters have different opinions on how 2012 will play out.

Both Halifax and Nationwide predict a mostly stagnant market with stability in house prices.

Halifax’s housing economist, Martin Ellis, commented: “Overall, we expect continuing broad stability in house prices nationally during 2012. Prices are again likely to end the year at levels close to where they began with the market continuing to lack any real direction.”

Nationwide’s chief economist Robert Gardner commented: “2012 isn’t shaping up to be much better than 2011, for the UK economy or the housing market.”

Other predictions have been less optimistic for the coming year with several property market experts forecasting a moderate decline in house prices.

IHS Global Insight, Capital Economics as well as estate agent Knight Frank all predict no less than a 5% dip in house prices during 2012.

IHS Global Insight economist Howard Archer commented: “House prices will fall by around 5% overall from current levels by mid-2012 as weak economic fundamentals outweigh extended low interest rates.”

While Knight Frank said: “Our view is that conditions in the UK mainstream market over the next few years will resemble our “slow correction” scenario, under which the market will experience an extended period of low transaction numbers and price falls in real terms.”

Moreover, a few experts predict dramatic declines in house prices, with some experts forecasting declines of 10% or more.

Jonathan Davis of Jonathan Davis Wealth Management has made the grimmest prediction for the UK house market in 2012: “Fall of 7 to 12%. This year will be down a couple or a few per cent but, in real terms, it will be down around 8%. Not insignificant at all.”

However, a few house market forecasters are predicting a rise in property prices for 2012. Rightmove’s experts predict their house price index to turn a 2% increase over the next year.