Uncertainty at FSA as chief resigns
After three of the worst years imaginable for a financial regulator, Hector Sants has stepped down as the chief executive of the FSA. His resignation will only add to the uncertainty that already clouds the authority.
Hector Sants has resigned as chief executive of the Financial Services Authority (FSA) after a three-year stint. He will leave in the summer. The FSA is to be stripped of its financial sector supervisory role, which will be submerged into the Bank of England, if the Tories win the general election.
What the commentators said
It's no surprise he decided to go, said Damian Reece in The Daily Telegraph. If you had been boss of the primary financial regulator, why become "second fiddle" in a merger with the Bank? It can't have helped that he chose "the worst three years in history" to run a financial regulator, as Andrew Hill pointed out in the FT. He had to deal with both the crisis and the regulatory changes afterwards, defending and then reforming the institution. Inevitably, his record is "mixed".
As head of wholesale regulation at the FSA from 2004, he saw no danger in investment banks' activities, despite his background in that field, said David Wighton in The Times. But post-crisis he started to change the FSA from "half-poodle, half-pussycat to something resembling a creature with teeth". His departure comes at an "awkward" moment, said Louise Armistead in The Daily Telegraph. It's not just the uncertainty surrounding the FSA. Britain is currently deciding whether to opt for an Obama-style break-up of big banks or stick with the G20 approach to global regulation. Hants leaves just as we "hesitate at the crossroads".
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Michelin Key Hotels 2025: the top destinations in the world
The Michelin Keys have been awarded to spectacular hotels across the world. From Marlon Brando's private resort in Polynesia to a Bvlgari hotel in Tokyo, we look at some of the most extraordinary stays in 2025
-
MoneyWeek news quiz: How much could you get in car finance compensation?
The car finance scandal, inheritance tax, and house prices all made headlines over the past few days. Test your knowledge while reviewing this week’s top stories with MoneyWeek’s news quiz