16.03.2012
By Simon Miller
Hector Sants is to step down as chief executive of the Financial Services Authority (FSA) in June this year.
Sants said he had completed 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.
During his five years as CEO Sants led an 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.
Sants had already tendered his resignation once before in February 2010 but the coalition government asked him to stay on and oversee the switch to the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA).
In the two years since agreeing to stay on, Hector created and delivered the new regulatory architecture, whilst continuing to lead the FSA against a backdrop of continued fragility within global financial markets.
Hector Sants, said:“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."
Adair Turner, FSA chairman, said: “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."
Andrew Bailey will take over Hector’s role as head of the Prudential Business Unit, the part of the FSA mirroring the future PRA, Martin Wheatley will remain the head of Conduct Business Unit and future CEO of the FCA. Following Hector’s departure both will directly report to Lord Turner.
Other stories you may find of interest:
A very British Complex
Greater complexity leads to greater risks for banks according to Professor Simon Collinson, Warwick Business School and the Simplicity Partnership
Treasury looks to experience for regulator appointments
The Government and the Bank of England has appointed three external members to the interim Financial Policy Committee.
