UK’s Financial Services Authority Statement Re: Sir James Crosby's Resignation

The Financial Services Authority can confirm that specific allegations made by Paul Moore in December 2004 regarding the regulatory risk function at HBOS were fully investigated by KPMG, which concluded that the changes made by HBOS were appropriate. The chairman of the FSA will write to the Chancellor of the Exchequer by the end of today, setting out the details.

Sir James Crosby has decided to resign from the board of the FSA, for the reasons he has set out in his public statement, and we would like to thank him for his very significant contribution to the FSA over the past few years.