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CPMA will have greater powers of intervention than FSA

Hector Sants, chief executive officer of the Financial Services Authority, says the Consumer Protection and Markets Authority will need greater powers of intervention and disclosure than the FSA.

Sants says: “The proposed wording for the PRA’s statutory objective contemplates that firms will fail and charges the PRA with making sure that when failure occurs, it happens in a way that minimises disruption to the financial system.

“To achieve this goal, it will focus supervisory resource, particularly senior management resource, on delivering intensive, intrusive, judgement-based supervision focusing on the issues that matter to the safety and soundness of the firm.  The FSA was in the past susceptible to accusations of ‘tick box’ regulation and it is vitally important that the PRA puts itself beyond the risk of such criticism.

“The PRA will not be attempting to pursue a “zero failure regime”. Persuading society that this is an acceptable goal will be a challenge.”

In addition, Sants stressed the importance of the PRA’s engagement with European bodies, recognising that most prudential policy implemented in the UK is now formulated at the European Union level.

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  • Gray Haired Underwriter 13th December 2010 at 4:34 pm

    Please will the Governement protect us from the messianic rantings of Hector Sants and restore some sanity to Regulation. The last thing we need is more intervention from an unacounatbel quango

  • Incompetent Regulators Awards Team 13th December 2010 at 4:10 pm

    Th FSA should get their own house in order 1st!