FSA’s Annual Report for 2008/9 focuses on many issues:  

  • Adair Turner’s Chairman’s statement looks at FSA’s role in restoring confidence in the financial system as well as outlining FSA’s work on its other regulatory objectives.  
  • Hector Sants’ Chief Executive’s report covers:  
    • how FSA has managed the consequences of the financial crisis in terms of authorised firms and their customers;  
    • the new Supervisory Enhancement Programme and the credible deterrence philosophy;  
    • planning prudential changes to the bank regulatory framework while continuing plans for Solvency II;  
    • continuing to focus on conduct regulation and using a new approach to it;  
    • launching Moneymadeclear to help consumers;  
    • continuing work on ensuring efficient and orderly markets; and  
    • improving FSA’s organisational effectiveness.  
  • The report then looks in detail at FSA’s actions in:  
    • responding to the crisis in dealing with financial stability and supervision of firms;  
    • promoting efficient, orderly and fair markets in terms of prudential and market regulation;  
    • helping retail customers achieve a fair deal, for example on TCF and the PPI actions as well as the RDR; and  
    • improving FSA’s business capability and effectiveness.  
  • Specific initiatives mentioned in the report include:  
    • the Supervisory Enhancement Programme, which led to, among other things, an increase of nearly 200 in supervisory staff, changes to the authorisation process for Significant Influence Functions to look additionally at the competence and regulatory knowledge of senior management of firms and changes to the supervisory risk assessment framework to include greater focus on business models;  
    • enforcement statistics: around 300 investigations closed during the year. Around two-third needed FSA to use powers (such as prohibition, financial penalties and variations of permissions). FSA levied £27.3 million in financial penalties during the year compared to £4.4 million last year and banned 58 individuals from carrying out regulated activities compared to 30 the year before;  
    • meeting targets: FSA delivered on time on 39 of its 59 targets for the year. Of the other 20, 10 were re-planned but still delivered in the 2008/09 financial year and 10 are still to be delivered; and  
    • numbers of firms: There are slightly fewer authorised firms and approved persons than last year.