Hector Sants spoke on creating the Financial Conduct Authority (FCA). He looked at its role in:

  • consumer protection: he said FCA’s approach would build on FSA’s current approach and concentrate on four key areas:
    • structural deficiencies which limit or impair consumer choice and experience;
    • intensive supervision focusing on point of sale practices, product manufacturing frameworks and firms’ governance and culture;
    • proactive product-based interventions, often on a thematic basis; and
    • making sure appropriate redress and compensation are available when firms fail, and continuing the enforcement theme of "credible deterrence";
  • he also looked at the regulatory toolkit for consumer protection and discussed the Mortgage Market Review and RDR;
  • markets: although the general perception is that there is little need for change in regulation of markets and wholesale business, the FCA must be ready to intervene early in emerging issues;
  • the European agenda: he appreciated the importance of coordination between UK regulators to represent the UK’s views properly in Europe; and
  • the transition to FCA: he looked at how FSA would move gradually to the new management structure and would publish further plans in the summer.

 (Source: Speech)