FSA chief executive Hector Sants quits
Updated on 09 February 2010
Hector Sants, head of City watchdog the Financial Services Authority, announces he is to step down in the summer after three years as chief executive.
Britain's top financial regulator announced his resignation this morning, surprising the markets and casting doubt over the future of the Financial Services Authority and broader banking reform.
Hector Sants had been vocal in opposing plans by the Conservatives to disband the FSA.
The Tories plan to hand the watchdog's banking supervisory powers to the Bank of England, because it "failed" to spot problems ahead of the financial crisis.
With the Tories tipped to win the general election expected in May, it is believed this threat has hastened his exit.
In a statement, Mr Sants said: "I am very proud of the manner in which the FSA rose to the challenge of dealing with such unprecedented turbulence across global financial markets.
"Moreover, I believe the FSA candidly examined the failings in financial regulation that contributed to the onset of the crisis, learned the lessons and has gone on to reform itself into a much stronger and better equipped organisation.
"The success of any regulatory structure depends on ensuring supervision is carried out by high-quality supervisors with sufficient resources and specialist support.
"I believe the FSA has made great strides in ensuring that such individuals are in place in the UK and I am sure that after I leave they will continue to do invaluable work to ensure financial stability and protect the interests of consumers."
Mr Sants, who will leave in July, had always planned to hold the chief executive post for only three years, but did not outline a succession plan.
A highly regarded former investment banker, he joined the FSA from Credit Suisse First Boston in 2004.
He took over the top job in July 2007, rising from head of the regulator's wholesale and institutional markets division to take the helm.
He steered the regulator through last year's downturn and the painful fallout that followed.
A spokesman for the FSA said the process to appoint his successor will be announced in due course.
The Financial Times reports that Sally Dewar, the FSA's managing director of risk is the most likely interim successor. The newspaper says John Pain, managing director for supervision, is also a frontrunner.
Economics correspondent Faisal Islam writes -
The official line from the FSA and the Treasury is that Mr Sants is standing down "as planned".
Both the timing and the content of the statement suggest that the Conservative plans to abolish his organisation played a part in his decision.
Last autumn, Mr Sants had privately told the Conservative Treasury team that their plans were imperiling morale and recruitment at the City regulator at a crucial time.
