The U.K. Financial Services Authority will be swept away next week after nearly 16 years, replaced by two new regulators with greater powers to intrude into banks’ business models, ban sales of financial products and name and shame suspects.
Banks in the U.K. don’t need to be afraid of the new finance regulator, its chief executive officer said today, reversing the mantra of the previous top official at Britain’s financial-oversight agency.
Barclays Plc, the bank fined for Libor manipulation, hired former Financial Services Authority Chief Executive Officer Hector Sants as head of compliance and government and regulatory relations, a newly created role.
U.K. Financial Services Authority Chief Executive Officer Hector Sants said British banks’ future bonus and dividend payments will depend on their satisfying regulators that the payments won’t weaken capital reserves or erode sound risk management, the Financial Times reported, citing an interview with Sants, who is to become head of the planned Prudential Regulatory Authority.
The U.K. Financial Services Authority couldn’t have done more to prevent the 2008 financial crisis, Hector Sants, the regulator’s chief executive officer, said in what is likely to be the agency’s final annual report.
The chief executive officer of Britain’s financial regulator, told pension funds that they had a “duty” to get more involved in the governance of the companies they invest in, including pay and bonuses.
Insurance companies considered too big to fail may be identified by global regulators as part of an initiative to reduce risks taken by firms so crucial to the financial system that their collapse could be catastrophic.