The FSA plans to cut back the number of staff dedicated to individual adviser firms and deploy more “floating” supervisors to address thematic industry-wide issues.
The regulator will publish a document later this month outlining the Financial Conduct Authority’s approach to financial services regulation.
The paper will detail plans to reduce the regulator’s focus on individual firms in favour of greater scrutiny of products and industry issues.
A source says: “In the new world the supervisors will be divided between those who are firm-specific and ‘floating’ supervisors who can be deployed on different issues as they come up on a thematic basis.
“It is more flexible and should lead to quicker responses.”
An FSA spokesman says: “We have always been quite clear that, ultimately, some firms will no longer have a dedicated supervisor, but we have not yet finalised the numbers.
“This approach will allow us to have more supervisors who can be deployed flexibly to deal with problems that arise and specific issues or products that have the potential to cause consumer harm or are already doing so.”