UK financial regulator CEO to step down
Hector Sants has announced his intention to stand down as CEO of the UK’s Financial Services Authority at the end of June 2012, after five years in the position.
He will not be taking up the position of head of the new Prudential Regulation Authority (PRA) as planned.
This is the second time Sants has announced his resignation as FSA chief executive. He was due to step down in the summer of 2010, having been appointed in July 2007. However, he was persuaded to stay on in order to oversee the UK’s reforms initiated by the new government, and named deputy governor designate of the Bank of England and chief executive designate of the Prudential Regulation Authority.
Sants enacted the creation of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), responsible for bank regulation. The new twin-peaks structure will come into effect on 2 April.
He will not be staying to oversee the planned merger, which will see the PRA integrated with the Bank of England, or to take his planned position as head of the body. The role will now be filled by his deputy Andrew Bailey.
The Financial Times reports claims that Sants has been frustrated by the delay in the legislative process of the FSA’s planned merger with the Bank of England.
Sants said:”When I agreed to stay on as chief executive in 2010, I committed to stay and deliver an orderly transition to the Government’s new regulatory structure. The project is now firmly on track and with the establishment of twin peaks within the FSA I will have achieved that goal.
“Now is the right time to hand over to those who will deliver the long-term goals of the future PRA and FCA.”
Mervyn King, governor of the Bank of Englaind said in a statement: “I am sad that Hector Sants has decided to stand down. I am very grateful to him for staying on for longer than he had planned.”