The proposed blend of functional and umbrella supervision is one of several models for the supervision of diversified financial services firms that include a bank. The United Kingdom, Australia, Switzerland, and some other countries have moved to a very different structure that relies on a single consolidated financial services regulator and eliminates supervisory and regulatory responsibilities at the central bank.
In this approach, the single regulator supervises bank and non-bank activities alike. 1  BIS Review 102/1999  Some see this structure as the wave of the future, given the blurring of distinctions between financial services. I wish our colleagues abroad the best of luck, but I think their legislatures have made a mistake.