View more on these topics

Regulator to recruit 100 more supervisors

The FSA is to recruit 100 staff to bolster its supervisory and risk assessment functions after admitting that its supervision of Northern Rock was unacceptable.

In response to a devastating internal report, the FSA says it will give greater priority to the supervision of individual firms and senior staff will have more direct involvement in the supervisory process.

The internal report identifies four major failings – a lack of sufficient supervisory engagement with the firm, a lack of adequate oversight and review by FSA line management, inadequate specific resource directly supervising the firm and a lack of intensity by the FSA in ensuring all risk information was properly utilised.

The FSA will enhance the profile of its prudential risk management and business analysis through its renamed prudential risk division.

The regulator is to reverse its practice from the last two years of reducing staff numbers in order to fund better-quality individuals.

The number of supervisors will rise from 506 to 570 and then to 625 by March 2009 due to the small firms’ strategy already announced. There will be a rise of around 30 staff in its risk and business analysis functions.

A new group of supervision advisory specialists will be created to conduct regular quality assurance reviews of all high-impact firms.

FSA chief executive Hector Sants says: “This programme is the response of the management of the FSA to the weaknesses identified in the particular case of the supervision of Northern Rock.

“It is clear from the thorough review carried out by the internal audit team that our supervision of Northern Rock in the period leading up to the market instability of late last summer was not carried out to a standard that is acceptable, although whether that would have affected the outcome in this case is impossible to judge.”


King hints at rate cuts to ease liquidity crisis

Bank of England governor Mervyn King has pledged to offer more liquidity help to banks as part of a long-term solution to the credit crisis.Appearing before the Treasury select committee last week, King denied that the bank is proposing to buy asset-backed securities such as sub-prime mortgage-backed instruments.He hinted that further base rate cuts are […]

Abbey confident of hitting targets

Abbey for Intermediaries managing director Ricky Okey says it still plans to deliver against its 2008 business plan despite the liquidity crunch.Speaking at its key account conference last week, Okey said the firm will stick to the lending plans which it originally set last August.He said: “A lot has happened since then but we have […]

Paper tiger

The FSA’s failures over Northern Rock are a body blow to the regulator. The one silver lining is that its internal audit committee did not shirk responsibility and produced a hard-hitting report.

Sesame guides advisers through equity release

Sesame is to offer a consumer guide for advisers to explain equity release.It aims to demystify equity release, outlining the different products available, along with the processes and costs involved.Sesame says the guide will help the increasing number of advisers that want to help their clients but are not authorised to give specialist equity-release advice […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm