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Sants: Separation of prudential and conduct supervision a “big mistake”

FSA chief executive Hector Sants has rejected any calls to separate prudential and conduct supervision by claiming it would be a “big mistake”.

Speaking to the Association of Corporate Treasurers, Sants said that the evidence of this crisis strongly supports the importance of having an integrated supervisor that can make a judgement call on the overall risk in an institution.

He said: “How could you judge risks in Northern Rock and HBOS without taking a view of product and selling risk as well as funding?

“As I have argued, the area of structure which is really important is macro-prudential. The macro-prudential gap needs to be filled. This can be done by strengthening the role of the Bank of England and closer collaboration between the Tripartite Authorities, although a structure for doing so has yet to be determined.”


Darling duds of may

Will the Budget announcement of a 50 per cent tax rate for earnings over £150,000 see an increase in interest in offshore bonds?

Mott goes against consensus

Bill Mott is once again going against consensus by reducing exposure to cyclicals in favour of defensives in the PSigma Income fund.After backing domestically-sensitive stocks for much of last year, Mott is now taking profits after the recent rally. He is adding to companies he says will deliver superior growth in tough economic conditions. He […]


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