Hector Sants, the chief executive of the UK’s Financial Services Authority (FSA), has announced his intention to leave the organization at the end of June 2012. He indicated that, as the “fundamental design and delivery of the changes needed to achieve the Government’s plan to separate prudential and conduct financial regulation in the UK,” it was appropriate for him to step down earlier than had been expected.
A bulletin from the FSA noted that “during his five years as CEO he has led the radical overhaul of the FSA’s pre-crisis approach to regulation, to a more proactive, intensive and judgment-led approach, for both prudential and conduct supervision. He has been instrumental in driving the reform of the capital and liquidity regimes for banks, championed the need for stronger governance and accountability within the industry and overseen the FSA’s transition to become an effective enforcer.”
Sants first announced plans to step down in February 2010 after three years in charge. However, in June 2010 the incoming Conservative/Liberal Democrat coalition government announced its plans to change the UK’s financial regulatory framework from an integrated model to a “twin peaks model, with prudential and conduct supervision to be carried out by two new organizations – the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).” He therefore agreed to stay on as the FSA’s CEO until the change had been completed.
The FSA said the “design work to deliver the Government’s proposed changes will culminate in the creation of a new twin peaks structure within the FSA that will come into effect on 2 April. This will mirror the split of future PRA / FCA supervisory responsibilities and help create a smoother transition to the organizations once the legislation currently making its way through parliament is enacted.”
Sants commented: “”When I agreed to stay on as CEO in 2010, I committed to stay and deliver an orderly transition to the Government’s new regulatory structure. The project is now firmly on track and with the establishment of twin peaks within the FSA I will have achieved that goal.
“Now is the right time to hand over to those who will deliver the long term goals of the future PRA and FCA. I am proud of what the FSA has achieved during my time in charge, through what have been incredibly challenging times. I would like to thank all of my colleagues for their dedication, support and hard work. I know I leave the organization in very capable hands.”
Adair Turner, FSA chairman, added: “The major reforms made within the FSA since the financial crisis and the progress in delivering the Government’s plan would not have been possible without Hector. He is a truly outstanding public servant of great integrity and has provided the FSA with dedicated leadership and focus through extremely turbulent times. I am very sorry to see him leave but I understand his decision, now that he has delivered what he set out to achieve. I’d like to thank him for all that he’s done.”
Sants’ last working day in the office will be the 29th of June 2012. Upon his departure, as previously announced, Andrew Bailey will take over his position as head of the Prudential Business Unit (PBU) the part of the FSA mirroring the future PRA.
Martin Wheatley will remain the head of Conduct Business Unit (CBU) and future CEO of the FCA. Following Sants’ departure both men will report directly to Lord Turner.
Source: Financial Services Authority
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