A shift in focus by the Financial Services Authority (FSA) toward the biggest City banks in the wake of the financial crisis has led to a dramatic reduction in the number of risk assessments conducted into financial firms.
More than 3,750 risk assessments - known as Arrow - have been conducted since 2002, the FSA revealed in response to a Freedom of Information Act request by the Guardian. Some 936 of these took place in 2002, with 616 in 2004 and 427 in 2006. The number then stabilised at around 300 until 2008 when it fell to just over 200. Lyndon Nelson, director of risk management at the FSA, said: "We have increasingly focused our supervisory work to be more intensive and intrusive for those firms that pose the biggest risks to the financial system." Last week, the FSA said its successor, the Pru...
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