Today’s publication of the N2+2 review saw the FSA acknowledge the impact the cost of regulation can have on smaller firms.
The FSA says it is developing a project to investigate this, in partnership with the Financial Services Practitioner Panel.
FSA chairman Callum McCarthy says: “”A key question for us is: what can we do to reduce the FSA’s contribution to the cost of regulation? In particular, we recognise that the cost of regulation falls disproportionately on smaller firms. So, one of our business priorities for the coming year will be to examine the impact of our regulation on this sector, look for further opportunities to reduce the burden where the impact of regulation is disproportionate to the benefit and to improve the way in which the FSA works with smaller firms.
“We are currently developing the scope of a project to consider this, in partnership with the independent Practitioner Panel, and will announce further details when we publish our Business Plan for 2005/06 in January.”