U-Turn by the Financial Services Authority

So the dear old FSA, after admitting to failing to properly regulate the banks and then awarding big bonuses to themselves are admitting that Principles Based Regulation was flawed.

Worse still chief executive of the FSA, Hector Sants says "be very frightened of the FSA". Good words to a sector that is on its knees.

Principles Outcomes Based Focused Regulation

However what Sants is planning to replace "principles based regulation" with is "outcomes focused regulation". This appears to be even more esoteric than previous regulation.

In particular they will....
make judgments on the judgments of senior management

Oh good, that fills me with lots of confidence.

The beginning of the end?

Mr Sants really can't have that long left at the FSA with ideas like this. Some IFAs are already calling for the abolition of the FSA citing that it is not fit for purpose.
Although I don't think we'll see the FSA scrapped just yet, I think some changes are going to have to happen and these changes tend to happen from the top.

Goodbye Mr Sants, please close the door on your way out.