In a "Dear CEO" letter dated 8 February 2011, Hector Sants announced that the FSA would adopt a new management structure on 4 April 2011, designed to reflect the "twin peaks" regulatory structure which the UK government intends to implement in 2013 (click here to see our most recent post on this subject).
The current Supervision and Risk business units will be replaced with a new Prudential Business Unit (PBU) and Consumer & Markets Business Unit (CMBU). The letter attaches an organisation plan (click here to see the organisation plan).
The organisation plan identifies Julian Adams, currently Director of the FSA's Retail Firms Division, as having charge of Insurance in the new PBU.
Sants observes that the new management structure does not, at this stage, represent a move to twin peaks supervision. He does, however, acknowledge that the FSA's workplan will need to be reprioritised to focus on the transition to twin peaks and expects that this will be achieved by a reduction in routine supervisory activity.
Click here to read the full text of the letter.