FSA moratorium on fresh initiatives

The FSA has called a moratorium on fresh initiatives in order to concentrate on preparing for the organisation’s overhaul.

The FSA’s business plan for 2011-12 says that the regulator is not planning any new “discretionary initiatives”.

According to the plan, the halt on fresh work reflects “the extensive resources needed for the regulatory reform programme and the need to recognise the difficult economic circumstances for many firms”. It also says the FSA’s headcount will be capped at its current level.

The document says the bulk of the FSA’s resources are earmarked for providing ongoing supervision and its two biggest policy initiatives, Solvency II and the Basel III banking supervision rules.

FSA chief executive Hector Sants said: “The 2011/12 business year for the FSA will be a difficult one. We have to ensure that we are operating effectively as a supervisor as well as taking forward the key policy initiatives.

“The principal ones are progressing the domestic consumer protection strategy, implementing a number of key EU directives and influencing the continuing international regulatory reform agenda. All this has to be done at the same time as taking forward the preparations for a new regulatory structure. The regulatory reform agenda remains on track to ensure the new structure will be ready in 2012. We will be seeking to deliver this agenda with a capped headcount.”

The FSA announced earlier this year that its budget for 2011/12 will be £500.5m, up 10.1% from £454.7m in 2010/11.