Hector Sants’ resignation will throw insurance sector into confusion, says City law firm RPC
The summer departure of FSA chief executive Hector Sants, announced today (Hector Sants to step down as FSA boss), will create confusion in the insurance sector, according to City law firm Reynolds Porter Chamberlain LLP (RPC).
Jonathan Davies, regulatory partner at RPC, said: “Taken with the Conservative Party threat to break up the FSA, Hector Sants’ resignation risks the regulator being viewed as a lame duck.”
“The head of the FSA is appointed by the Treasury and with a general election looming it would make sense for Hector’s replacement to be agreed amongst the main political parties – the problem is that they all seem at odds over what the role of the FSA should be. But no one will take on the role of chief executive without a clear definition of what the job entails.”
“This is not the environment in which the future of the insurance sector can be left hanging in the balance for months, it risks sowing too much confusion. The insurance industry needs a period of regulatory stability and this isn’t going to help.”