Risk-based performance

With the announcement of its funding requirements for 2010/11, the FSA has sent a clear signal, if one was needed, that there is now a more intensive supervision regime in part.

The FSA defined the key areas where it will focus its work as:

• Continuing to deliver intensive and intrusive supervision
• The delivery of the credible deterrence philosophy which is central to the FSA’s supervisory approach
• The policy reform programme, driven by the Turner Review, which forms the FSA’s response to the financial crisis and covers critical issues such as reforms to liquidity and capital regimes, and
• Ensuring delivery of the wider policy agenda mandated by the European Union. This includes Solvency 2, the review of the capital adequacy regime for the European insurance industry, and the largest project undertaken by the FSA.

Hector Sants, FSA chief executive, said: “The way the FSA regulates has changed radically, both in approach and intensity over the last three years.

Click here for details