"People should be very frightened of the FSA" warns Hector Sants
FSA chief executive warns firms that the UK financial regulator will embark on more intrusive regulation
LONDON - "People should be very frightened of the FSA," said Financial Services Authority (FSA) chief executive Hector Sants in a confrontational speech today. Sants pledged that the regulator would be far more "intrusive and direct" in its supervision of UK firms from now on.
Sants said the regulator would be far more interventionist and judgemental towards senior management, moving from a regulatory style based on observable facts to regulation based on judgements about the future.
"This more intrusive and direct style of supervision we call the intensive supervisory model. To see the full picture it is important to ally this with our more proactive approach to enforcement - our credible deterrence philosophy," said Sants.
Sants referred to media criticism of the effectiveness of the FSA - specifically mentioning a perceived softness in fraud and financial crime enforcement. The regulator has faced a tough press since its botched supervision of nationalised mortgage lender Northern Rock - for which the FSA subsequently admitted its failings.
"There is a view that people are not frightened of the FSA," said Sants. "I can assure you that this is a view I am determined to correct."
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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
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. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Looming US Basel endgame redraft sparks calls to save IRB
Experts say 20 years of data makes credit risk models more appropriate than standardised approach
Cool heads must guide financial regulation of climate risk
Supervisors can’t simply rely on ‘magical thinking’ of market discipline, says Sergio Scandizzo
Markets worry EU’s reporting simplification will add to burden
Rather than reducing firms’ obligations, market participants fear it could end up increasing requirements
EU banks show basic instinct for credit valuation adjustments
Simpler approach to CVA appeals even to some already using more complex models for counterparty risk
Bank of England wants dynamic Emir for UK clearing houses
Review won’t just photocopy EU legislation, as BoE seeks to make rules simpler and adaptable
Big banks could be sidelined from future rescue deals – FSB
Exacerbation of too-big-to-fail means G-Sibs could already be too large to take extra assets
More guidance, less enforcement: the SEC under Paul Atkins
Current and former insiders expect clearer crypto rules and an end to regulatory violation sweeps
During Trump turbulence, value-at-risk may go pop
Trading risk models have been trained in quiet markets, and volatility is now looming
