FSA Removes Annual Reporting Requirement For Senior Managers

by Robin Pilgrim, LawAndTax-News.com, London

04 May 2006

The UK's Financial Services Authority on Wednesday announced that firms will no longer have to notify the FSA each year of the roles and responsibilities of their FSA-approved senior managers.

This move contributes to the commitment made by the FSA to reduce the administrative burden placed on firms, and also forms part of its better regulation agenda. Whilst this is a relatively small change, it is estimated that it will save the industry around GBP2 million a year in administration costs.

The ending of the reporting requirement, agreed by the FSA Board last week, has immediate effect and will save firms from having to collate and report the information this year – until now firms had to report, by 31 July each year, all Approved Persons with a significant management function who were in post at the previous 30 June.

FSA General Counsel Andrew Whittaker explained that:

"This is a sensible and practical piece of deregulation in the context of our programme to simplify the FSA Handbook and remove unnecessary burdens. It will reduce costs for firms and for the FSA without increasing regulatory risks."

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