Hector Sants, chief executive of the Financial Services Authority, has called time on the era of \”light-touch\” or \”principles-based\” regulation and said that a new \”outcomes-based\” approach was needed in the wake of a financial crisis that many blame on the previous regime.
Speaking at Oxford University\’s Saïd Business School, Mr Sants said the FSA would no longer wait for problems to occur before acting and would instead intervene \”in a proactive way\”, saying the regulator would hire more staff in the next year, despite the uncertainty over its future.
How excellent. So, instead of devising codes and checking that everyone\’s filling in the forms they\’re going to start understanding the markets they\’re trying to regulate, keep an eye on what people are doing and tell people not to be so damn stupid when they are being.
You know, like the Bank of England did before the FSA was created?