Standards & Guidance
FSA releases thinking on principles-based regime
The Financial Services
Authority (FSA) has published a paper setting out its latest thinking on its
move to a more principles-based regulatory regime.
John Tiner, FSA chief executive, said a principles-based
approach is the natural next step in the evolution of the FSA’s regulatory
system, adding that the regime will give companies more choice over how they
meet regulatory requirements and for many will bring a closer fit between this
and their business processes.
Welcoming the FSA paper, Roy Leighton, chairman of the
Financial Services Practitioner Panel - a
statutory body representing the interests of the financial services industry -
said: “This is an ambitious undertaking for all concerned. But one which the
Panel feels the FSA is right to take on. It has set itself and the industry a
significant challenge which both parties must grasp and be determined to deliver
in the manner intended. The potential benefits of doing so are significant”.
The FSA’s paper also received the backing of Stephen
Haddrill, Association of British Insurers
director general, who said the approach will benefit both consumers and
financial services companies.
Following this, the FSA emerged from its
National Audit Office (NAO) review with, broadly speaking, a clean bill of
health. The NAO review – commissioned last June - found the FSA had good relations with
other regulators, is generally effective in influencing international
developments, and has recently enhanced its efforts in fighting financial crime.
However, the review also made a number of recommendations, including that the
FSA streamline its processes and advice.
Links
Financial Services Authority
Financial Services Practitioner Panel
Association of British Insurers
National Audit Office
May 2007
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