The last couple of years have been some what uncomfortable for the Financial Services Authority with the recent Northern Rock debacle highlighting a number of deficiencies in the UK Financial Sector. However, it seems that Sir Callum McCarthy will hand over the reigns to a safe pair of hands when he steps down in September.

Lord Turner has a history in banking having held the role of vice chairman of Merrill Lynch Europe and is well respected in the sector. Finally it seems as though the regulatory body is to receive the input of someone who has been there and done it in a sector which seems fraught with danger.

The FSA has been at the centre of the Northern Rock storm with many inside and outside of the industry claiming that monitoring of the sector was lax and there was insufficient staff to carry out even the most basic of checks. There are high hopes that the new regime will bring in new systems, new procedures and demand more finance to reduce the chances of another Northern Rock situation in the future.

As the financial sector and the financial instruments on offer continue to grow and become more complex it is vital that someone with inside knowledge is at the helm.

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