FSA To Streamline Rule Book

by Robin Pilgrim, LawAndTax-News.com, London

15 July 2005

The UK's Financial Services Authority on Wednesday set out the first phase of its programme to simplify its Handbook and remove unnecessary Rules and Guidance, as part of its drive to achieve better regulation for firms.

The Handbook review programme aims to focus on eliminating or changing requirements which are more restrictive than needed to achieve the FSA's statutory objectives, which do not deliver benefits to justify their costs, or which are not consistent with the FSA's focus on senior management responsibility. The move forms part of the FSA's move towards a more principles-based approach.

Based on these criteria, the first phase of the review will cover simplification and streamlining of Anti Money Laundering requirements, of the Approved Persons regime, and of the Training and Competence regime. It also outlines a major review of the retail Conduct of Business regime.

FSA Chairman Callum McCarthy explained that:

"We are determined to be more rigorous about the costs and burdens that regulation imposes on firms. We are also simplifying our Handbook requirements and the way we express them, which will help all firms but particularly smaller ones who do not have access to expert advice. It sits alongside other major initiatives we have in hand to make us an easier organisation to do business with such as Firms Online, Integrated Regulatory Reporting and the shorter application packs which will reduce the time and effort firms need to spend in dealing with us."

He added:

"We will continue to gather views from all our stakeholders about how other parts of the Handbook can be improved to deliver better regulation in practice."

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