Sants to beef up FSA

The Financial Services Authority is hiring staff in order to increase supervision of markets and create a bigger better regulator.

In an interview with the Financial Times Hector Sants, chief executive of the FSA, says the regulator plans to step up its oversight and become a more intrusive supervisor.

This makes for a u-turn from former FSA chief executive John Tiner who called for 300 job cuts within the regulator by 2010.

Sants says: “What we are doing is strengthening our supervisory processes. Everybody at the FSA is inolved in analysis, identification of risk, subsequent follow up enforcement. They are all a part of supervision.”

He adds that in the past FSA policy has failed the regulator by addressing only the probable risks not those that are likely to make the most impact.

Sants says: “We are saying we think we can do better. We are acknowledging that we could have challenged those business models more before they went into the downturn.”