Fears over 'swamping' of Financial Services Authority if powers not made clear
Government plans to allow accountants and other professions limited exemption from direct supervision by the FSA have been challenged in the Commons by the Conservatives.
Tory spokesman Howard Flight was concerned that the line being drawn between occasional ancillary services for clients and the provision of financial services is not sufficiently clear.
Firms engaging in the business of providing financial services will come directly under FSA regulation. Those who provide advice purely as part of accountancy services to clients will be subject to regulation thought professional bodies.
Flight earlier said he was worried that because the line has not been spelled out in sufficient detail, to be on the safe side for regulatory purposes more firms than necessary would apply to the FSA, swamping their machinery.
The proposals were contained in six new clauses being debated in the Commons earlier this week among 114 pages of potential changes to the Financial Services Authority Bill, including 480 amendments – around 250 from the government – and 43 new clauses.
NEWS ANALYSIS – Will ‘big brother’ accountancy firms end up watchdog to their smaller brethren ?