The FSA will create a new supervisory taskforce to review its employees who are overseeing standards for high-impact firms.
It comes in the wake of the Northern Rock crisis, in which the FSA admits making four key failings. The regulator says it lacked “sufficient supervisory engagement” with Northern Rock, while failing to rigorously follow up with management following changing market conditions. It also says FSA line management failed to provide adequate oversight on the firm's supervision, while admitted it lacked specific resources directly supervising Rock and the intensity needed to ensure all available risk information was “properly utilised”. The FSA board says even if it had provided an “acceptable” ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes