The Financial Services Authority's judgement-based, twin peaks system must be embraced by the industry and lead to behavioural and cultural changes in both firms and regulators, according to Hector Sants.
The chief executive of the FSA today confirmed the new system, which splits conduct and prudential regulation, will come into effect from 2 April, ahead of a more comprehensive overhaul, which will see the establishment of the Financial Conduct Authority and the Prudential Regulation Authority. In a speech to the British Bankers' Association, he said the "new world" of judgement-based regulation needed to be "embraced by us all" and also accepted the FSA had been unclear about its own objectives in the past. Sants added the changes provided an opportunity to "accelerate the behavioura...
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