FSA praised for cutting burden of regulation

The review, commissioned by Chancellor Gordon Brown in the 2004 Budget, praises the FSA’s risk assessment protocol, which it says allows for more complete assessment and flexible regulation.

It also commends the FSA’s use of administrative penalties rather than court proceedings.

Brown says he will fully adopt the review’s recommendations, applying risk strategies to reduce inspections by a third. This will be accompanied by tougher penalties for companies which consistently break the rules.

The Hampton review covered the work of 674 regulatory bodies at national and local level in the UK.

But IFAs are cynical. FSC Investment Services managing director Frank Cochran says: “There is no way the FSA should be praised for lowering regulation burden. Because of extra regulation, the IFA market will be 30 per cent lower in the next six months.”