FSA revamps its structure

THE FINANCIAL Services Authority said yesterday it had completed reforms of its operational structure designed to help it identify risks in the financial sector.

The FSA, which has been criticised for failing to spot the signs of the banking crisis, has created a new international division, led by director Verena Ross, which it said would help it engage with international efforts on regulatory reform.

Enforcement and financial crime will merge into one division led by Margaret Cole, in an effort to ramp up the City watchdog’s role as a deterrent.

The regulator’s financial stability team will be beefed up and mandated to look at macro-prudential issues, under director David Strachan.

Remaining divisions will be reorganised into units mandated to oversee risk, financial capability and supervision.

Chief executive Hector Sants said the restucturing had brought “radical changes”.

“These changes will provide greater clarity, both internally and externally, as to the way we work and, in particular, reinforce our role as micro-prudential supervisor,” he said.

The restructuring takes effect from 1 October.