FSA regulatory momentum must continue, director states

24 June 2010

The Financial Services Authority’s (FSA) tougher approach to regulation must continue after its powers are handed over to the Bank of England (BoE), the director has said.

Margaret Cole made the comments during an FSA conference in London.

The director of enforcement at the regulatory body stated that it has developed a reputation as a more heavyweight prosecutor towards market abuse.

She was quoted by Bloomberg as saying: “It’s important, if we are to continue to get results, that this pipeline isn’t disrupted,
especially because these complex matters have a long investigatory period before charging and a lengthy court process before trial.”

“We must build on this progress - not lose it,” Ms Cole added.

The comments follow a recent announcement by chancellor of the exchequer George Osborne that the FSA will be broken up and the majority of its powers handed over to the BoE.

Hector Sants, outgoing chief executive of the body, is expected to head up a regulatory arm at the new organisation while also taking on the role of deputy governor at the bank.

The decision to break up the FSA follows the recent levying of the largest fine in its history.

JPMorgan Securities received a penalty of £33.32 million for failing to adequately protect client funds.

By Jim Ottewill

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