FSA says firms still taking risky decisions

LONDON (Reuters) - Some big financial institutions are still taking risky decisions despite what happened during the financial crisis, Financial Services Authority Chief Executive Hector Sants said on Thursday. “We are still seeing some decisions by management in major firms that we would judge not to be prudent,” Sants told the Chartered Institute for Securities and Investment’s annual conference.

Chancellor George Osborne announced on Wednesday that he would scrap the FSA and divide up its powers between the Bank of England, a new white collar crime-busting agency and a new consumer protection and markets authority.

Sants will oversee the transition and head the Bank’s new regulatory subsidiary.

“In the UK we have made significant progress on the matter of improving supervisory effectiveness,” Sants said.