The Financial Services Authority’s report out tomorrow is expected to admit it made mistakes when supervising Northern Rock’s rescue but is unlikely to produce any dramatic reforms.
The watchdog is expected to admit its focus on customer protection and other ‘conduct of business’ issues may have been at the expense of some prudential duties, overseeing the viability of banks’ business models, the Financial Times reports.
The FSA has started to put through some changes, which include the development of a new risk management team headed by risk expert Colin Lawrence.
More appointments are likely for the new team, the role of which will be to provide expertise and support to the front-line supervisory teams and more detailed examination of banks’ risk models.
Further reading:
Rock investors call for judicial review on compensation
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