FSA: Dear CEO Letter: Update on transition to new regulatory structure
April 4, 2011
Previously, the Government set out plans to restructure the FSA. These plans involved: (i) a transfer of prudential supervision of banking and insurance to a subsidiary of the Bank of England, the Prudential Regulation Authority, and (ii) to rename the FSA the Financial Conduct Authority, which will focus on consumer protection and market regulation.
Hector Sants, CEO of the FSA, has now provided an update on the FSA's transition to a new regulatory structure. The FSA has replaced its Supervision and Risk business units with a Prudential Business Unit and a Conduct Business Unit.
The government will introduce legislation to allow for the formal transfer of power from the FSA to the successor regulators, this is expected to happen during 2012.
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