In particular, the FSA was criticised for: focusing on individual firms rather than the system as a whole; placing too much reliance on senior management and boards of firms to make decisions about the appropriate balance of risk and return; focusing more attention on conduct of business than on prudential strength; assessing ‘approved persons’ based on probity in the past rather than their competence for a specific role going forward; and 44  relying on unfettered wholesale markets to provide appropriate levels of customer protection . During this time, the FSA embarked on a Supervisory Enhancement Programme (SEP) to remedy perceived weaknesses, such as being “light touch” and “reactive”. But a change in government set the wheels in motion for a significant overhaul of the architecture of financial services regulation when George Osborne announced the abolition of the FSA in his maiden speech at Mansion House in June 2010,  45  and a new  supervisory approach was ushered in a few years later with the establishment of the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). 43  FSA website: http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&ved=0ahUKEwjSvKz71pnTAhUHIMAKHUvtAzYQFggrMAM&ur l=http%3A%2F%2Fwww.icmacentre.ac.uk%2Ffiles%2Ffinra_reading_list%2Fsupervision_oversight_sep08%2Fsupervison_and_oversig ht_fsas_approach_to_supervision_and_risk.pdf&usg=AFQjCNFpZ5SdEn1o5BNy8Dxh5tbTyP-eng&bvm=bv.152174688,d.ZGg 44 Turner review: http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwiXmqjw15nTAhXKB8AKHUW5 CC8QFggcMAA&url=http%3A%2F%2Fwww.fsa.gov.uk%2Fpubs%2Fother%2Fturner_review.pdf&usg=AFQjCNFEP0NiS2fGmuePCRj3o0GLtZgGA 45 Osborne, George. Speech by the Chancellor of the Exchequer, Mansion House (16 June 2010): https://www.gov.uk/government/speeches/speech-by-the-chancellor-of-the-exchequer-rt-hon-george-osborne-mp-at-mansion-house  15  All speeches are available online at www.bankofengland.co.uk/speeches  15  Today’s supervisory challenge As I outlined at the start of this speech, the PRA’s model of supervision rests on a forward-looking, judgement-based approach to the supervision of banks, building societies and insurers.

The UK’s progress on resolvability Speech given by Dave Ramsden, Deputy Governor for Markets and Banking  At the Institute of Chartered Accountants in England and Wales 26 February 2021  With thanks to Anika Duggal and Amy Lee for their assistance in preparing these remarks, and to Bank colleagues including Andrew Bailey, Adam Cull, Andrew Hewitt, Sasha Mills, Michael Salib, Ruth Smith, Tom Smith and Sam Woods for their many helpful comments and suggestions. 1  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  Thank you for inviting me to come to speak at the virtual ICAEW. I can’t think of a better venue for my first speech on resolution – particularly because of the vital role which the accountancy profession plays in some of our key resolvability judgements and safeguards, which fundamentally underpin the credibility of the regime. The Bank of England is the UK’s Resolution Authority; within the Bank I took on Deputy Governor level responsibility for resolution a year ago. It has been a fascinating time for me to take on this important responsibility, allowing me to contribute to the ongoing shaping of our resolution regime as it develops towards its immediate goal. That goal, a strategic goal for the Bank, is ending ‘too big to fail’ by making sure the firms we supervise can fail in an orderly way no matter their size. Put more practically we committed to Parliament that major UK banks should be resolvable by 20221.