Chief executive Hector Sants says the restructure will better align the FSA’s operation model with its core activities of identifying and mitigating risk, supervision and enforcement.
The FSA’s retail and wholesale firm supervision will be rolled into one supervision business under managing director Jon Pain.
Risk identification, risk management and policy formation will be rolled into one business unit headed up by managing director Sally Dewar.
The FSA’s existing financial stability team will be expanded into an enhanced division under director David Strachan. It will focus on macro-prudential issues and provide the central link for the FSA with the wider macro-prudential framework.
The new international division will be run by director Verena Ross.
The enforcement and financial crime divisions will merge to form one division under the management of Margaret Cole.
The financial capability division will move from the existing retail business unit to become a standalone division run by Chris Pond.
Sants says: “These changes will provide greater clarity, both internally and externally, as to the way we work and, in particular, reinforce our role as micro-prudential supervisor based on a model of integrated risk analysis and integrated supervision. I believe the actions we have taken since the crisis began have shown the effectiveness of this model. This reorganisation will ensure our changing working practices and the way we make our judgements are successfully institutionalized.”