FSA Chief Gets Tough on the Square Mile

Hector Sants, the FSA chief executive has said that he is “determined to correct” the attitudes within the square mile that people were not afraid of the FSA.

 

Mr Sants, has warned that people in the square mile and the broader financial services industry should be frightened of FSA, indicating that the FSA will be introducing a more proactive and thorough approach to regulation of financial services. The new approach is likely to be more intrusive and direct.

 

Mr Sants, has indicated that compliance will move away from box ticking to a thorough approach to regulation that will involve a review of the outcomes of the actions that financial services firms take.

 

In a strong warning he mentioned that the FSA may use its wider powers of prosecution to deliver their mandate. In the current climate and with a government that needs to save face, and be seen to be doing something many financial services firms should begin to re-think how they approach compliance with the newer focus on accountability.

 

The additional checks and balances that have been pushed onto borrowers in terms of their personal finance by lenders, seem to be getting pushed on financial services firms by the FSA. This surely can be no bad thing in the long run for individuals and the economy as greater responsibility with ones personal finance, can only provide greater security for the individual and investors, lenders and financial services companies.