Davies Outlines FSA's Risk-Based Supervision Plans

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LONDON--Howard Davies, chair-man of the UK's Financial Services Authority (FSA), has announced that the new regulatory body will follow a "risk-based approach to supervision". The FSA will also create a complex groups division to supervise large banking and securities trading operations under a single regulatory framework, he adds.

Davies outlined the FSA's approach in a speech at the Institute of International Bankers' annual Washington conference earlier this month. The new framework will be