City watchdog, the Financial Services Authority, is to overhaul the way it
operates, pledging to become more communicative and to reduce costs in the
The FSA has been criticised over a number of issues – in particular its
handling of compensation to split-capital trust victims.
Chief executive John Tiner, in a speech made to the Securities &
Investment Institute this week, said the FSA intended to shift towards a more
‘principle-led’ regulation regime, which it believes will be better for both
markets and consumers.
‘Principles-based regulation has been in place since the FSA’s creation in
2001. But we have all lived with a rather unsatisfactory hybrid of thousands of
detailed rules sitting underneath the principles,’ Tiner said
He also said the watchdog would improve its communication skills, would
become less risk-averse and more helpful in providing answers to company’s