In his speech last week Hector Sants outlined that the gloves are off and that the FSA are looking to "beef up" their supervision teams. An additional 280 specialist staff are being recruited and all Supervisers are to be subject to further training.
Firms should also consider:
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'Do not take risks you do not understand.'
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'Ensure the focus is on the long run franchise and profitability of the institution not the short term.
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'Ensure a healthy and ethical culture in your organisation!'
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'Recognise the future is not predictable and ensure at all times you understand the circumstances under which your firm will fail and that you are happy with the degree of risk mitigation you have.'
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'Ensure a healthy and thoughtful culture of challenge from the independent directors
A further Discussion paper setting out what happens next is due out on 18th March.
