A shake-up of the Financial Conduct Authority will see two divisions created from April, allowing a clearer distinction between large and smaller firm regulation, the FCA announced today.
The changes were revealed by FTAdviser’s sister paper the Financial Times at the end of last week, following widespread speculation that several executive committee members, including Clive Adamson, would be leaving.
The main structural changes include bringing together the authorisations and supervision divisions with specialist supervision functions such as financial crime and client assets, creating two divisions from April.
Tracey McDermott, director of enforcement and financial crime, will take responsibility for managing this transition and will subsequently lead one of the new divisions.
A new strategy and competition division, led by director of policy Christopher Woolard, will bring together more market based work supported by an enhanced data, intelligence and research capability.
A new risk division will provide a strategic approach to the management of internal and external risk, with head of client assets Richard Sutcliffe becoming the acting director.
David Lawton, director of markets, will lead a new markets policy and international division, focusing on increasing the FCA’s influence on the European stage.
A market oversight division will be created incorporating the UK Listing Authority and market monitoring functions, led on an acting basis by current head of the UKLA, Marc Teasdale. Other specialist market supervision functions will be integrated with supervision.
The regulator’s recent additional responsibility for consumer credit means the number of firms that now come under its remit has trebled over the past eighteen months.
Therefore the FCA is changing strategy for a ‘sharper focus’ on how firms are regulated and to deliver the right outcomes for consumers and the markets.
Several structural changes to how the organisation works will complement this new approach, with the changes reflecting lessons learned from recent external reviews.
As a consequence, Clive Adamson, member of the executive committee and the board, and executive committee members Zitah McMillan and Victoria Raffe, will be leaving the organisation.
Martin Wheatley, chief executive, stated: “The financial industry continually evolves and to regulate it effectively we must evolve too.”
The changes will commence from 5 January and will be fully in place by April.
peter.walker@ft.com
