KPMG accuses FSA of losing driving force
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The FSA has taken its foot off the pedal in engaging with Europe as it concentrates on the move to the new regulatory structure, according to KPMG.
Speaking during a panel session at the Association of British Insurers’ biennial conference in London last week, KPMG financial services risk and regulatory centre of excellence director Rob Curtis said: “In the last six to nine months, the regulatory focus on international developments has perhaps come back a little.
“While people at the FSA are internally focused, some of the driving force internationally has come off the pedal.”
Curtis added he hopes the regulator will begin to engage with Europe more fully, as the UK has typically led the way in regulatory policy development.
The FSA rejected the claims. FSA director of insurance Julian Adams said: “It is really important that the UK engages internationally. We are absolutely committed to playing a constructive part in Europe. If you look at the investment of our senior management’s time in Europe, it is very significant, and it is time that we are absolutely willing and prepared to give. So I do not accept the characterisation that we are in some way taking our foot off the pedal.”
The FSA is expected to complete its restructure to split into the Prudential Regulation Authority and the Financial Conduct Authority in early 2013.
Current FSA chief executive and PRA chief executive designate Hector Sants said last month that the PRA will effectively act as a supervisory arm of a European regulatory regime. The PRA will hold the UK’s voting seat in two out of the three new European supervisory authorities set up in January.
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