Hector Sants, chief executive of the FSA, said the organisation's successor the Prudential Regulatory Authority (PRA) will take a judgment-based rather than reactive approach to regulation.
At the PRA Banking Conference today, Sants outlined the new approach of the PRA. The Prudential Business Unit of the FSA was formed on 4 April this year, and will eventually break away and become part of the Bank of England as the PRA by 2012. Sants said the primary function of the PRA will be to promote stability in the financial system, and its single objective will be to promote the soundness of regulated firms. To do this Sants said there must be a shift in the approach of the regulator from a reactive organization which trusts the judgment of firms, to an organization which fo...
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