March 22 (Bloomberg) -- The U.K. Financial Services Authority increased its annual budget by 15.6 percent to 578.4 million pounds ($914 million) in its last year of operation, citing the challenges of structural changes and implementing European rules.
The financial watchdog, funded by the firms it regulates, is preparing to be abolished by 2013 and replaced by two new regulators to police banks and markets. Around 1,100 people will move to the Prudential Regulatory Authority at the Bank of England while the rest of the FSA’s 4,000 employees will go to the Financial Conduct Authority.
The “authorities will be very focused on controlling costs,” said Hector Sants, the FSA’s outgoing chief executive officer. The FSA will “continue to deliver effective supervision and to support the development of the key European policy initiative,” he said in a statement.
The regulator increased its budget by 10 percent last year to 501 million pounds as it started two separate business units to mirror the creation of the Prudential Regulatory Authority and Financial Conduct Authority in 2013.
Sants will resign at the end of June after a five-year stint leading the FSA that encompassed the 2008 financial crisis and its aftermath, he said in an e-mailed statement last week.
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