The FSA has scrapped its supervision and risk business units as part of its transition to the new regulatory structure which will see the creation of the Prudential Regulation Authority and the Financial Conduct Authority.
The units have now formally been replaced with a Prudential Business Unit and a Conduct Business Unit.
FSA chief executive Hector Sants has updated firms on the progress towards the new regulatory structure in a Dear CEO letter published on the FSA website today.
The PBU will be headed up by Sants, with Bank of England executive director of banking Andrew Bailey as deputy head of the unit. Bailey joined the regulator as a Bank secondee yesterday.
FSA enforcement director Margaret Cole will act as interim head of the CBU until Martin Wheatley takes up the role on September 1.
Sants says while the transfer to the new structure is taking place existing ways of working, such as Arrow visits, will continue to take place.
In the letter Sants says: “We know this period will bring challenges, but we have a clear plan of what we need to do to make sure we are ready, and we are firmly on track to deliver by the intended timescales.
“We are focused on making sure our work creates minimal disruption for your firm, and so we will not be introducing any new discretionary initiatives during the transition period.”
The FSA says the restructure to the PRA and FCA bodies will take place at the end of 2012 or early 2013.