The FSA says it will begin operating internally under the twin peaks model from April and will rely more on a risk-based approach to regulation.
Draft legislation undergoing pre-legislative scrutiny will split the FSA into the Prudential Regulation Authority and the Financial Conduct Authority in early 2013.
FSA conduct of business unit interim managing director Margaret Cole said: “From next April, we expect to move internally to a twin peaks model and that is the point at which if you will have two sets of supervisors under the new structure you will start to see two sets of supervisors.”
Cole said that firms regulated by the FCA but which do not do not have a specific relationship manager will see the regulator build on the risk-based approach to regulation it has been developing over the past 18 months. She said: “This will enable us to make smarter use of the data that we receive from firms and other sources and we will develop risk profiles for small firms to enable us to target our resources at the firms posing the highest risk.”