New FSA Enforcement Policies Come Into Effect

by Robin Pilgrim, LawAndTax-News.com, London

24 October 2005

The UK's Financial Services Authority announced last week that a new policy aimed at making its enforcement process more transparent and fair has taken effect.

The new policy reflects the recommendations of the FSA's Enforcement Process Review, published this summer, which required changes to the FSA Handbook.

The majority of recommendations did not need to be consulted on and the FSA implemented a number immediately.

A cross-FSA team is reportedly on schedule to implement the remainder of the recommendations by the end of the year.

The Review was commissioned in February by the FSA Board after aspects of its enforcement process were criticised by the Financial Services and Markets Tribunal, and because it was evident that many affected by enforcement actions had doubts about the fairness of the process.

Margaret Cole, FSA Director of Enforcement, announced that:

"We are making good progress in the implementation of the Enforcement Process Review which will, we believe, bring greater clarity and transparency to our work."

"Whilst we are on track for all the Review recommendations to be implemented by the year-end, I want to be clear that I see this as a process of continuous improvement - we recognise that the industry we regulate does not stand still and that we cannot afford to either. So we will keep what we are doing under regular review and where we see room for improvement we will make the necessary and appropriate changes."

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