By Max Clarke
Against a backdrop of considerable change, with the UK government last year announcing plans for structural changes to financial regulation in the UK, the Financial Services Authority (FSA) have set out their business plan for 2011/12.
The FSA will restructure into the Prudential Regulation Authority (PRA) and the existing FSA legal entity will become the Financial Conduct Authority (FCA). This change will occur at the end of 2012 or early 2013.
Reflecting the extensive resources needed for the regulatory reform programme and the need to recognise the difficult economic circumstances for many firms, the FSA is not planning any new discretionary initiatives and is capping headcount at the current level.
“The 2011/12 business year for the FSA will be a difficult one.” Said Hector Sants, Chief Executive at the FSA, “We have to ensure that we are operating effectively as a supervisor as well as taking forward the key policy initiatives.
“The principal ones are progressing the domestic consumer protection strategy, implementing a number of key EU directives and influencing the continuing international regulatory reform agenda. All this has to be done at the same time as taking forward the preparations for a new regulatory structure. The regulatory reform agenda remains on track to ensure the new structure will be ready in 2012. We will be seeking to deliver this agenda with a capped headcount.”