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FSA revamps its structure

THE FINANCIAL Services Authority said yesterday it had completed reforms of its operational structure designed to help it identify risks in the financial sector.<br /><br />The FSA, which has been criticised for failing to spot the signs of the banking crisis, has created a new international division, led by director Verena Ross, which it said would help it engage with international efforts on regulatory reform.<br /><br />Enforcement and financial crime will merge into one division led by Margaret Cole, in an effort to ramp up the City watchdog&rsquo;s role as a deterrent.<br /><br />The regulator&rsquo;s financial stability team will be beefed up and mandated to look at macro-prudential issues, under director David Strachan.<br /><br />Remaining divisions will be reorganised into units mandated to oversee risk, financial capability and supervision.<br /><br />Chief executive Hector Sants said the restucturing had brought &ldquo;radical changes&rdquo;.<br /><br />&ldquo;These changes will provide greater clarity, both internally and externally, as to the way we work and, in particular, reinforce our role as micro-prudential supervisor,&rdquo; he said. <br /><br />The restructuring takes effect from 1 October.