The FSA has outlined its timetable and intentions for dealing with the splitting of its responsibilities amongst several regulators.
Speaking to the All Party Parliamentary Group on Insurance and Financial Services, Lyndon Nelson, FSA director of risk management, said the regulator would internally reorganise for January 2011.
This internal arrangement is expected to last a year, with a "tentative" date for the hand over to new regulators in June 2012. Nelson added the Government will be publishing a consultation paper on July 23.
Nelson said: "In effect there are four possible locations for FSA functions. Potentially there will be transfers to the Bank of England, their risk management capabilities are not sufficient to deal with the scale of operations from their subsidiaries. Clearly we will also be making transfers to the Prudential Regulatory Authority and the Consumer Protection Market Authority (CPMA).
"In addition, what is also likely to happen, for a undefined period of time, is a shared service across the regulators. This will encompass things like technology, training and human resources. These are quite difficult to split."
There is also consultation to be considered on two issues; a single economic crime agency, to be taken forward by the Ministry of Justice, taking some of the FSA's current responsibilities and whether the responsibility to the office of fair trading relating to consumer credit should be transferred to the CPMA.
Asked by the committee on the direction of regulation in the future, Nelson added: "There is no indication in any of the discussions we have had with ministers or any other Government body there will be any change in the overall supervisory approach or philosophy, so all the things, such as the Mortgage Market Revue and the RDR will be carried forward."
When asked by Conservative MP Tracey Crouch, how all these regulators would interact, with many firms likely to have more than one regulator, Nelson relied: "Speaking as a veteran of when we had 11 regulators I can say that we will coordinate as best we can.
"Agencies will start with a good inheritance as the majority of the staff will be ex FSA and will know each other."
