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FSA is seeking third MD to focus on IFAs

The FSA intends to give retail regulation and consumer education more clout by creat-ing a third managing director position below chairmanHoward Davies.

The new post will carry direct responsibility for the IFA market.

The move comes as Davies reveals the PIA board will step down later this month aspart of the move towards toa single regulator.

Speaking at the FSA&#39s first AGM last week, he gave IFAs a vote of confidence, saying there is “no evidence” thatthey lack technical knowledge.

The new director will have prime responsibility for consumer relations, insurance and investment regulation.

The post will be advertised in the near future. The new appointment, to be made by Chancellor Gordon Brownin the autumn, means some changes will be made to the responsibilities of the two existing managing directors.

Head of financial supervision Michael Foot will continue to take charge of deposit-takers and markets together with his overall financial stability responsibilities.

Phillip Thorpe will continue to take charge of authorisation, enforcement and fighting financial crime. Chief operating officer Paul Boyle now has responsibility for human resources as well as information systems, premises and finance.

The FSA is to look for a chairman for its new regulatory decisions committee.

Davies&#39 pat on the back for IFAs came as he spoke about plans to overhaul the exam system for IFAs and tied agents. He said any changes would be in response to the changing marketplace rather than addressing any shortcomings in IFAs&#39 knowledge base.

He said: “The new post will considerably strengthen the FSA&#39s decision-making and overall management structure. It will bring a stronger focus on retail regulation and consumer education to our board discussions.”


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