The budget for the FSA’s conduct of business unit is set to rise by 25 per cent from £147.6m in 2011/12 to £183.3m in 2012/13 as the regulator prepares for the introduction of the twin peaks regulatory model.
From early next year, the FSA’s conduct of business unit will become the Financial Conduct Authority and its prudential unit will become the Prudential Regulation Authority.
The rise of £36.2m in the conduct unit’s budget was revealed in the FSA’s annual Business Plan, published today. Over the same period the cost of the regulator’s prudential unit will fall 10 per cent from £173.4m to £156.9m, as staff move across to the conduct unit.
The business plan says: “The conduct business unit increase reflects the movement of staff from the prudential business unit and the annual costs of additional staff hired during 2011/12 to deliver our new intensive and intrusive supervisory approach in preparation for the new firm-specific financial regulation regime.”
Total staff costs for the regulator will rise 3 per cent from £359.5m in 2011/12 to £371.8m.