The Financial Services Authority has split into its ‘twin peaks’ regulation model today (2 April).

The split sees the FSA split into two teams with one team focusing on prudential supervision and the other focusing on conduct.

It was hailed by the FSA earlier this year as a ‘new world of judgement-based regulation’.

The change comes ahead of the move into the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) in 2013.

The FSA hopes by implementing a twin peaks model early, it will cause minimum disruption for when the PRA and FCA are formed.

Joseph Eyre, manager of wholesale markets and enforcement, insurance and asset management at the FSA, said: “The split is an internal re-organisation so firms shouldn’t notice anything different apart from they will have different people to report to.”

Since the change was announced, two senior members have announced their departure from the organisation.

Chief executive Hector Sants, who was key to the changes to the regulatory model, has given his resignation and is due to leave at the end of June.

As well as his role in setting up the new model, he was appointed chief executive designate of the PRA and was a member of the Financial Policy Committee, the third committee in the new tri-partite system, at the Bank of England.

His colleague Margaret Cole, head of the conduct business unit and former head of enforcement, has also left the regulator. She has since announced that she will be moving to a legal role at financial services firm PricewaterhouseCoopers.

Her replacement has not yet been announced by the FSA.