On 9 February 2009, the Financial Services Authority (FSA) published its Business Plan for the financial year 1 April 2009 to 30 March 2010 which addresses the risks highlighted in the Financial Risk Outlook released on the same day.
Hector Sants, the chief executive of the FSA, reported that the coming financial year would be one of "unprecedented challenges" for the financial services industry. Accordingly, the FSA will focus on ensuring regulated firms are soundly run, have adjusted their business models to take into account the troublesome economic conditions to make sure they are sufficiently capitalised and securely funded. Furthermore, the FSA will also continue to push its "treating customers fairly" program to aid consumers through the economic downturn. Finally, the FSA hopes that it will complete its program of enhancements to the supervisory process.
In order to fulfil these aims, Hector Sants warned regulated firms that they should expect higher fees, although he was careful to point out that those firms that require the most regulatory scrutiny will bear the higher proportion of the fees. The FSA's budget has been set at £415 million to reflect the extra work that needs to be done, however the FSA will still need to increase the amount it raises from firms by £117 million to complete its proposed plans. The ways in which the FSA plans to raise these additional funds is explained in a consultation paper on regulatory fees and levies, a copy of which can be found by clicking here.
A copy of the Business Plan can be found by clicking here.