Sants announced this morning that he would be leaving the FSA “having completed the fundamental design and delivery of the changes needed to achieve the government’s plan to separate prudential and conduct financial regulation in the UK”.
In February 2010, Sants announced his resignation and was due to step down as CEO of the FSA in the summer of 2010 after three years in the position. However, in June 2010 the new government announced its plans to change the UK’s financial regulatory framework from an integrated model to a twin peaks model, with prudential and conduct supervision to be carried out by two new organisations - the Financial Conduct Authority and the Prudential Regulation Authority.
Sants agreed to become the chief executive of the Prudential Regulation Authority and a deputy governor of the Bank of England when the FSA is disbanded but is now leaving on 29 June.
Sants said: “When I agreed to stay on as CEO 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 Financial Conduct Authority.”
“I am proud of what the FSA has achieved during my time in charge, through what have been incredibly challenging times. I would like to thank all of my colleagues for their dedication, support and hard work. I know I leave the organisation in very capable hands.”
Commenting on his departure, Adair Turner, FSA chairman, said: “The major reforms made within the FSA since the financial crisis and the progress in delivering the government’s plan would not have been possible without Hector. He is a truly outstanding public servant of great integrity and has provided the FSA with dedicated leadership and focus through extremely turbulent times.
“I am very sorry to see him leave but I understand his decision, now that he has delivered what he set out to achieve. I’d like to thank him for all that he’s done.
“He can rest assured that he leaves behind a transformed organisation, safe in very capable hands, with a robust blueprint for the future. He goes with my personal thanks and best wishes for the future.”
Andrew Bailey will take over Hector’s role as head of the Prudential Business Unit the part of the FSA mirroring the future PRA; Martin Wheatley will remain the head of Conduct Business Unit (CBU) and future CEO of the FCA.
