The Financial Services Authority met its regulatory objectives in 2011/12 at the same time as delivering the new twin peaks model of financial services regulation on schedule, outgoing chief executive Hector Sants said today.

Speaking as the regulator published what is likely to be its final annual report Mr Sants, who will leave his post at the end of this month, said the body had also made 'considerable progress' in advancing its new pro-active approach towards consumer protection.
Last year saw the FSA complete the high-level design work needed for the 'twin peaks' model of financial regulation. In early 2013, the FSA will be replaced with two new bodies: the Prudential Regulation Authority and Financial Conduct Authority.
The annual report also confirmed that the FSA had succeeded in establishing an 'internal twin peaks' model on schedule. This internal model will act as a precursor for the new set-up.
Mr Sants said: 'Despite a challenging environment we have successfully moved to an internal twin peaks model within the FSA from April 2012, maintaining the momentum required to deliver the new regulatory structure from early 2013.'
In the report, the FSA also highlighted its financial stability work, which included efforts to ensure major financial institutions have adequate capital and liquidity and banks have effective recovery and resolution plans.
It also continued its focus on influencing the international and European policy agenda, in particular in relation to the impending Solvency II and Basel III legislation.
Last year saw the lowest level of abnormal price movements prior to company announcements - the measure the FSA uses to measure the transparency and openness of financial markets - since 2003.
And, as part of the regulator's plan to execute a 'credible deterrence and enforcement approach', five significant criminal cases came to court in 2011/12 and it imposed its highest-ever fine for market abuse - $9.6m for Rameshkumar Goenka under its new penalty framework.
FSA chair Adair Turner said: 'Over the last four years, the FSA has changed radically its prudential supervisory approach, fixing the deficiencies which became clear in the financial crisis. That transformation has had to be implemented while also ensuring strong focus on major current financial stability risks.
'I am convinced that a "twin peaks" model will deliver major benefits. The PRA will have a mandate to focus on prudential issues even when most people assume, as they did before the crisis, that prudential risks are low: and it will be located within the Bank of England, facilitating important synergies between macroeconomic and prudential analysis and insight. The FCA will have a dedicated focus on customer and investor protection challenges in both the retail and wholesale markets.'