The FSA, formed in 1997 by the Chancellor of the Exchequer, expressed sentiments that the transition would be smooth and changes would be beneficial, but many in the industry worried about the implications of having two regulators instead of one
London, UK -- (SBWIRE) -- 06/05/2014 -- Last April, the Financial Services Authority (FSA) was replaced by the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA). The FSA, which had been formed in 1997 by the Chancellor of Exchequer, expressed sentiments that the transition would be smooth and changes would be beneficial, but many in the industry worried about the implications of having two regulators instead of one.
Recently, the National Audit Office (NAO) released the report: "The Financial Conduct Authority and the Prudential Regulation Authority: Regulating financial services”.
In it, the report contained a few key issues made the headlines. Most notable is the more than £125 million forecasted increase in costs to operate the new agencies. This amount is 27 percent higher than the costs of operation of the 2012-2013 fiscal year for the FSA.
A number of factors could be contributing to the increase, including the fact that strategic and objective approaches exist in the two agencies that either A) conflict or B) overlap. However, both the FCA and the PRA are still in the process of building and refining their frameworks, and the next year may lead to more streamlined procedures.
Robert Johnson, Director of Middlesex Partnership, commented:" As time progresses, it would be beneficial to see both agencies develop a more structured approach to the evaluation of the work each respective group performs. I would also like the see regulators publish their key measures of performance as their frameworks are further refined. Overall, however, it seems as if the changes to the FSA have been positive and are moving in a direction that is good for the financial industry."
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About Middlesex Partnership
Middlesex Partnership is a specialist Corporate Governance recruitment consultancy, providing focused career services to Compliance, Risk Management, Information Security and Audit professionals and a flexible range of recruitment approaches to Financial Services and Law Firms.
With a background of over 20 years’ experience in niche market recruitment, focusing on Corporate Governance, we have become recognised by both clients and compliance professionals as a leader in our field. Working with Financial Services and Law Firms throughout Great Britain, we provide a committed service, working with a range of options to ensure long term reliability and maintain high levels of communication, giving us a thorough understanding of our clients and their needs – this is paramount to our business ethic. As specialist recruiters in Compliance and Information Security, we offer professionals both knowledge of their career paths and commitment to help ensure that they achieve their goals.