FSA expects final operational changes by October
Changes to the UK Financial Services Authority's (FSA) operational structure, prompted by failings in its supervision of Northern Rock, are due to be complete by October 1, the regulator said today.
Internal reforms have been under way at the FSA since July 2007, building on the lessons of the banking crisis, the authority's internal review following the collapse of Northern Rock, and the priorities outlined in the Turner Review of global banking regulation, published in March this year.
The FSA said the changes are expected to better align its internal operating model to its core activities of identifying and mitigating risk, supervision and enforcement. This is primarily to be achieved by merging or restructuring business units.
A new risk division will be established under Sally Dewar, managing director for wholesale markets, incorporating risk identification, risk management and policy formulation, which were previously separate. Meanwhile, the existing financial stability team will be expanded to focus on macro-prudential issues. David Strachan, director of financial stability, will remain in charge.
In addition, supervision of retail and wholesale firms will be combined in one supervision unit under managing director Jon Pain. A new international division will also be set up to increase the FSA's engagement with regulators in other jurisdictions. Verena Ross, the director of strategy and risk, will head this division.
Enforcement and financial crime will be integrated to form one division headed by Margaret Cole, at present the director of enforcement. Meanwhile, a separate financial capability division will be established under the leadership of Chris Pond, the current director of financial capability within the retail division.
See also: Turner condemns 'rent seeking' banks
Northern Rock reports heavy losses in 2008
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Banks will not be frowned upon for discount window borrowing – Fed official
Risk Live: more banks have completed paperwork to access Fed lending facility than a year ago
Capital One puts OCC’s tough stance on mergers to the test
Proposed Discover deal should be approved but will go under the microscope, ex-regulators say
As FCMs dwindle, regulators fear systemic risk
Panellists highlight dangers of clearing membership becoming more concentrated
EU banks fear green asset ratios paint an unfair picture
Industry lobbyist clashes with lawmaker over usefulness of new sustainability disclosure
EU watchdogs to launch prop trader capital review in April
Prop traders say bank-style IFR rules are driving them out, but doubt EBA will suggest changes
Investors say new SEC disclosures may sit on shelf
Advisory committee questions value of rule 605 changes, even for retail investors
CFTC hears ‘call to action’ from swaps end-users on Basel III
Commissioner Pham mulls engaging with prudential regulators over capital hit on clearing
Iosco gears up for ‘intensive work’ on AI regulation
Watchdogs risk ‘falling behind the curve’, secretary-general warns; FSB also working on guidance
Most read
- As FCMs dwindle, regulators fear systemic risk
- Top 10 operational risks for 2024
- Top 10 op risks: AI fears drive cyber risk to record high