It is consulting on merging the customer functions in the regime which it says will lessen the burden of paperwork on firms in the wholesale and retail markets.
Managing director of regulatory services David Kenmir says the move is part of the FSA’s commitment to remove regulations where costs outweigh the benefits and he predicts £1m annual savings for firms.
For retail markets, the FSA has previously discussed three options – no change, removing some or all customer functions or simplifying the functions – with 80 per cent of respondents favouring simplification.
The consultation paper also sets out changes to the approved person regime that can be expected from Mifid, with most changes expected to supersede current requirements rather than impose new ones.
Kenmir says: “Through our handbook review programme, the FSA is removing regulations whose costs outweigh the benefits they bring.”