FSA “sobered” by troubled year

Before the Northern Rock crisis, the Financial Services Authority was riding on a wave; the darling of regulators around the world. However, almost overnight, the run on Northern Rock dented confidence in the banking system and everyone connected with it, including the FSA. IR&A looks at one of the most difficult years in the FSA’s history and finds that the regulator has been humbled by the experience, determined to rectify the damage

After a few difficult first years following its formation, there was a time when the Financial Services Authority (FSA) seemed to be winning over regulated firms, impressing other regulators around the world and influencing regulatory policy. But that was before the events of last year and into 2008 delivered a blow to the financial services industry, in particularly banks and investment houses, having a knock-on effect on stock markets and market confidence and ultimately raising questions over the authority of the regulator in times of stress.