27-03-2008
FSA confirms failings in relation to Northern Rock
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The UK's Financial Services Authority (FSA) has published an internal report criticising its own handling of the situation at Northern Rock.
In releasing its report, the FSA has recommended that, in future, the UK's leading banking organisations should face regulation by specialists.
"[It is] clear that our supervision of Northern Rock in the period leading up to the market instability of late last summer was not carried out to a standard that is acceptable," said Hector Sants, chief executive of the FSA. "I am determined through the programme of work that I am announcing today, that proper standards will apply to all significant firms supervised by the FSA."
Among the failings identified by the FSA include the presence of incomplete paperwork, in addition to high levels of staff turnover at the organisation. The report also criticised the levels of direct contact with executives at Northern Rock, partially caused by insufficient staff numbers.