In 2013, the FSA will be replaced by two new regulatory bodies. These will carry forward our philosophy of outcomes-based regulation, intensive firm supervision and credible deterrence:
1. The Prudential Regulation Authority (PRA), a subsidiary of the Bank of England, will be responsible for promoting the stable and prudent operation of the financial system through regulation of a number of deposit-taking institutions, insurers and investment banks, that are considered to be systematically important.
2. The Financial Conduct Authority (FCA) will be responsible for regulation of conduct in retail, as well as wholesale, financial markets and the infrastructure that supports those markets. The FCA will also have responsibility for the prudential regulation of firms that do not fall under the PRA’s scope.
To ensure a smooth transition, in April 2011 we made changes to our current internal structure – setting up the Prudential Business Unit (PBU) and a Conduct Business Unit (CBU) within the FSA.
In addition to his current Chief Executive responsibilities, Hector Sants is currently the head of the PBU and will move to become the CEO of the PRA. He is supported by a new arrival to the FSA, Andrew Bailey, who has joined the FSA from the Bank of England to act as the deputy head of the PBU.
As well as this Martin Wheatley has joined the FSA this autumn as the head of the CBU and will become the chief executive of the FCA in 2013.
This restructure of our working framework offers an exciting opportunity to make your mark in financial regulation, gaining a valuable insight into this complex, diverse and continually evolving industry.
