Hector Sants was today named chief executive of the Financial Services Authority, Britain’s financial watchdog.
Mr Sants, currently managing director of wholesale and institutional markets at the regulator, was thought to be the front-runner for the post.
A former investment banker who joined the FSA from Credit Suisse First Boston in 2004, Mr Sants, 51, replaces John Tiner, who steps down at the annual meeting on Friday after almost four years at the helm.
He fought off competition from internal candidates, including the regulator’s two other managing directors, Clive Briault at retail markets and David Kenmir at regulatory services, and from unnamed external candidates.
His investment-banking background has made him widely liked in the City. He won praise for tightening the regulator’s monitoring of hedge funds.
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Mr Sants also led FSA attempts to cut out market abuse, but Mr Tiner admitted recently that the watchdog had been frustrated in its mission to crack down on insider dealing, and he accused banks of being complacent about possible exploitation by their staff of secret information about bids.
Mr Sants will find himself dealing with many of the issues outlined by Mr Tiner’s FSA - including the battle against market abuse - and will also face many of the same challenges.
In his own view of the challenges ahead for his successor and for the regulator, Mr Tiner told City dignitaries last week
that these included the regulation of retail banking, consumer credit and reform of retail distribution as the FSA moves to principles-based regulation in the retail market.
“I plan to continue [Mr Tiner’s] agenda, ensuring that the FSA itself - and crucially its people — are well-equipped to deal with the complex and constantly changing financial services industry,” Sants said today.
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“I firmly believe in the risk-based and more principles-based approach the FSA has pioneered and I will work with the industry to ensure that market solutions deliver the best outcomes for all stakeholders, with a particular focus on consumers.”