FSA to merge retail and wholesale supervision

  Following its failure to correctly supervise Northern Rock and anticipate the financial crisis, politicians cited the need for major changes in the way the FSA handles macro-economic risk. The FSA says it hopes to implement the changes outlined by the Turner Review, and adapt from lessons learnt following the Northern Rock debacle, on 1 October. Reforms are intended to better align the FSA’s internal operations with its core acitivities of identifying risk, supervision and enforcement. Regulators will have a greater role in the areas of macro-prudential analysis, international regul...