Martin Wheatley, head of Hong Kong's financial regulatory body, has emerged as a leading candidate to head the Consumer Protection and Markets Authority (CPMA) when it is spun out of the FSA next year, according to reports.
Wheatley, a former deputy chief executive of the London Stock Exchange, has already said he plans to leave his post at the Hong Kong Securities and Futures Commission in June, the Financial Times reports.
A final decision is expected within the next few weeks as the FSA continues preparations for its 2012 break-up into the Prudential Regulatory Authority (PRA) and the CPMA whose remit will encompass financial advisers.
Margaret Cole, FSA director of enforcement, is considered the leading internal candidate on the shortlist to head the CPMA.
Carol Sergeant, former head of risk at Lloyds Banking Group, and John Fingleton, head of the Office of Fair Trading, have also been mentioned, but are not seen as likely choices.
A final decision is expected within the next few weeks as the FSA continues preparations for its 2012 break-up into the CPMA and the Prudential Regulatory Authority (PRA).
Hector Sants, chief executive of the FSA, told staff shortly before Christmas about his plans to create two new business units, including the heads of key directorates.
A new prudential business unit, which will eventually merge into the Bank of England as the PRA, will supervise banks, insurers and large brokers.
Another consumer and markets unit will form the backbone of the future CPMA, to regulate small groups and markets and how larger firms treat their customers.
Sants’s announcement did not address the future of the “sector heads” within the FSA in charge of both conduct and prudential regulation, whose roles will be eliminated under the planned reorganisation.
Ken Hogg, head of insurance, is understood to be leaving the FSA to return to the private sector. He joined the watchdog in July 2009 from MGM Assurance, where he was interim chief executive.
Tom Huertas, head of banking, has no plans to leave, and the regulator is likely to strive to find a position for him, according to people with knowledge of the plans.
Most other FSA directors and staff now know what their roles will be and which unit they will be in. No redundancies are planned.
The new structure will come into effect in April as a working model for the new regulatory set-up, due to be implemented next year.
Several senior people whose roles are set to disappear have already said they will leave, including Sally Dewar, head of risk, Jon Pain, head of supervision, and Dan Waters, head of conduct risk.
Who's Who in the PRA and CPMA?
Headed by FSA boss Hector Sants, with Andrew Bailey, a Bank of England executive director, as his deputy.
Stephen Bland, head of wholesale firms, will lead the division overseeing investment and overseas banks; Bailey will head retail banks; Julian Adams, director of the retail firms division, will lead on insurance; Paul Sharma, head of prudential policy, will continue in a similar position.
Head will be named in coming months. Alexander Justham will continue to head markets; Graeme Ashley-Fenn will continue to head authorisations; enforcement, headed by Margaret Cole, will remain a separate unit for now.
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