Hector Sants, head of the Prudential Regulatory Authority
(PRA), has reiterated that there will not be a return to light
touch regulation for the UK banking system.
Sants explained the philosophy and functions of the
PRA, which will be responsible for supervising banks from 2013
"This is about a potentially different style of
regulation," said Jonathan Herbst of Norton Rose. "It is more
senior and more judgement-based."
Peter Green, a partner in the capital markets
practice of Morrison & Foerster, commented that this is not
a surprising development, considering the concerns that have
been raised about the previous supervisory approach of the
Financial Services Authority (FSA).
"The financial crisis...