The Prudential Regulation Authority (PRA) must have support from the public and parliament if it is to be a success, according to Hector Sants, the chief executive designate of the PRA.
Speaking today at the launch of a briefing document on the approach of the PRA, Sants said the FSA never received full governmental or public backing.
He said: “It seems to me that a major issue for the FSA was that it never achieved the full support of parliament or the public. There was a misalignment of the understanding of the purpose and value of supervision. The PRA must start its life with the full backing and agreement of those it serves.
“We need to recognise that the PRA’s purpose is understood and supported by the community that it serves, namely the UK society as represented by parliament.”