Although the FSA is the single statutory regulator of financial services business, special provision is made for certain professions, including accountancy.
Instead designated professional bodies will regulate exempt firms. The regulatory bodies have not yet been designated but could include organisations such as the law societies, the institutes of chartered accountants and the Association of Chartered Certified Accountants.
Under the draft rules, the FSA will oversee the designated professional bodies and review how they regulate the exempt firms.
Moreover, the FSA will also have reserve power to bring the firms’ activities under direct FSA regulation, if it?s necessary to protect consumers.
The consultation paper is available from the FSA website at www.fsa.gov.uk/pubs/cp/69