Major overhaul for City watchdog
FSA to be more communicative and to cut costs
City watchdog, the Financial Services Authority, is to overhaul the way it
operates, pledging to become more communicative and to reduce costs in the
process.
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
questions.