FSA explains overhaul of risk framework

The launch of the Financial Services Authority (FSA) as the single regulator for financial services is still a recent memory yet its regulation has undergone many changes since 2001. Risk-based regulation was at the heart of the new regulator’s being and therefore it is no surprise that the system needed to be adapted and modified. However, the FSA has overhauled the original risk-based framework ARROW (Advanced, Risk-Responsive Operating frameWork) to create its new and improved successor, ARROW II.