Timeline of Hector Sant's career at the FSA
Created by R_Harris on 20/03/2010
Last updated: 03/06/10 at 16:49
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Hector Sants, the head of the Financial Services Authority, has resigned from the regulator.
Sants, chief executive of the FSA, will leave the organisation in the summer after having been at the helm of the regulator for three years.
He said, 'When I was appointed I told the board that I planned to serve as CEO for three years, and I intend to stick to that timetable. Of course, those three years have encompassed the most extraordinary circumstances for a financial regulator, and I am very proud of the manner in which the FSA rose to the challenge of dealing with such unprecedented turbulence across global financial markets.
Hector Sants’ mistake was that the people were afraid of the regulator – afraid it couldn’t do its job.
My biggest memory of Hector Sants’ short reign was his speech at a Reuters conference in March 2009 when he warned the City that ‘people should be very afraid of the FSA’.
This gave rise to the joke in the Citywire office that Sants was modelling himself on Judge Dredd – the regulatory bad ‘ass police man, judge and executioner rolled into one.
The Financial Services Authority (FSA) intensive regulatory supervision regime is set to get even tougher, chief executive Hector Sants announced this afternoon.
The Financial Services Authority (FSA) has warned that it will intensify its supervision regime and people who fall short of its standards could wind up in jail.
Sants said he was 'unconvinced' all senior management had taken on board the need to change, warning the regulator would get tough on those falling short of its standards.
"Within these core structural changes there are also key areas for policy reform, perhaps the most radical of which are changes to the rules with regard to capital and liquidity management."
The FSA chief has got his own reasons to be fearful after warning regulated firms to 'be afraid'
"This set of structural failures was then magnified by a series of governance failures and poor business judgements by the financial institutions themselves."
"It is important to recognise that regardless of the improvements the FSA makes there are limits to what regulation can achieve."
The Financial Services Authority's (FSA) chief executive, Hector Sants, has hit back at criticisms that the new remuneration code is too soft on bankers, saying that politicians have 'ducked' the issue.
In an attempt to deflect criticisms away from the regulator, Sants said that the code being published was actually 'tougher' than the one published in March, before adding that it was down to MPs to tackle huge payouts to bankers.
Speaking on BBC Radio this morning, Sants said the debate over pay 'was for government', adding that politicians were 'passing the buck to the FSA' and 'ducking the issue' about introducing pay caps.
What was not expected was that this correction would also lead to a massive liquidity squeeze.
I would attribute this primarily to loss of confidence due to lack of transparency and understanding.
Both the sellers and the buyers of products had, in many ways, forgotten the golden rule of “don’t sell or buy a product you don’t understand”.
This lack of discipline was undoubtedly compounded by the lack of transparency of the risk being accepted. The well documented criticisms of credit rating agencies being an obvious contributor to this issue of transparency.
You will all be aware of the importance that we attach to the retail distribution review. This industry review has the specific objective of improving the way consumer needs are met, and recognises the importance of financial advice in achieving this goal.
We believe that you should be seeing this review as an opportunity rather than as a threat.
The Bank of England's liquidity support to ailing Northern Rock caused a run on the bank
"I am privileged to have the opportunity to take the FSA through the next phase of its development. John Tiner and his senior management team have laid out a clear path for the future of the organisation. I plan to continue that agenda, ensuring that the FSA itself - and crucially its people - are well-equipped to deal with the complex and constantly changing financial services industry."