View more on these topics

Sants says get tougher on senior staff

Outgoing FSA chief executive Hector Sants has used his last speech at the regulator to call for greater individual accountability at financial services firms and for senior management to be hit with tougher penalties.

Speaking this week at Merchant Taylors’ Hall in London, Sants said firms should be encouraged to place more emphasis on treating customers fairly when assessing an individual’s pay.

Sants said the Government and the FSA are “committed to a discussion paper on the governance of individual accountability for decision-making”.

He also argued if someone is on the board of a bank that fails, they should not be allowed to carry out that role in future.

Sants said: “It is important regulators operate a credible enforcement regime for individual wrongdoing, particularly in the conduct area. In this area, much progress has been made to ensure the regulatory regime is seen as providing effective deterrence. However, I believe it is vital that penalties are raised above the current level so that momentum in this area is maintained.”

Sants said he has previously described the relationship between the regulator and the regulated as a “partnership” but that it instead should be a relationship of “constructive tension”. He noted that one of the “major themes” across his speeches was that people should be “very frightened” of the FSA.

Law firm CMS Cameron McKenna partner Simon Morris says: “It is a shame Sants ended his last-ever speech on the jarring note that people should be very frightened of the FSA. That is quite wrong. The new regulators should command respect through informed dialogue and rational decisions.”

Yellowtail Financial Planning managing director Dennis Hall says: “Sants’ words are all well and good but what about the accountability of the FSA and the Government?”



John Howard: Clean up claims firms but they have a role to play

How many emails, texts and phone calls have you received today from Claims Management Companies promising you compensation for dodgy loan insurance cover?  This aggravating blight on our daily lives is reaching a crescendo as claims firms try to cash in on the billions of pounds the banks have already set aside for the missale […]

First class

Reaction to an ATM scam offers a lesson for protection firms

HBOS corporate head to appeal FSA action

Former Bank of Scotland corporate division head Peter Cummings is to appeal against a seven-figure fine and “warning notice” imposed by the FSA, according to reports. The Daily Telegraph reports last month’s FSA report into BoS failings focused on Cummings’ corporate division, saying it was “guilty of very serious misconduct” which meant the bank “failed […]


Former HBOS head Cummings appeals against warning notice and fine

Former HBOS corporate division head Peter Cummings is reportedly appealing against an FSA warning notice and seven-figure fine for failings in the bank’s corporate division. The Daily Telegraph says the FSA has issued Cummings with a warning notice and fine in relation to the failings. Last month, the FSA publicly censured the Bank of Scotland […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. And there was me thinking he might be suggesting greater accountability on the part of senior regulatory staff. No chance ~ if they screw up they get eased out with a massive golden parachute.

    As for any aspiration that the FSA might command respect through informed dialogue and rational decisions, there’s about as much chance of that as there is it cancelling its RDR.

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