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Govt set to review impact of FSA rules on small firms

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Enterprise adviser to the prime minister Lord David Young says he is “fed up” with the FSA and will review the impact of its regulations on small businesses.

Delivering the Conservative policy forum annual lecture at the Conservative conference in Birmingham last night, Young said financial regulation could be scaled down in the same way as health and safety laws.

In 2010, prime minister David Cameron tasked Young with reducing the number of health and safety laws. He went on to produce a report, Common Sense, Common Safety.

Responding to a question from the audience, the former cabinet minister said there is a specific issue with financial services regulation impacting on small businesses.

He said: “Unfortunately we need a certain amount of regulation because people will abuse their situation. When sophisticated individuals are dealing with unsophisticated investors we need rules. But I am sorry the current regulation is bad and we will have a look at it.

“Health and safety laws were difficult but I had a look at it two years ago and it is far less difficult today. I appreciate what you are saying, I am a bit fed up with the FSA and will have a look at it.”

Young said he has encountered financial regulation when he set up a firm, saying: “I was responsible for creating the Securities and Futures Authority, a regulator that existed before the FSA, and when I left Government I set up a business and found I had to be registered under it. It wanted me to take an exam and eventually we compromised and I became an eminent person and I did not take the exam.”

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Comments

There are 15 comments at the moment, we would love to hear your opinion too.

  1. Perhaps all IFAs should elect to become ’eminent persons’. What are the qualifications ? uhm! would someone let me know.

  2. Excellent – it would now appear that to move from Level 4 to CFP all I might need to do is persuade the FSA that I am ’eminent person’. On a more serious note, I welcome anything that will (a) lessen the burdon and (b) apply a little more common sense.

  3. Ooh I say – I wonder how you become an eminent person??!!
    I wonder if that was before or after the ennobling of his Lordship??!!
    Joking aside – perhaps he of all people will understand the difference between the regulator and the regulated …

  4. So, no exam relevant to this industry eh!

    I applaud his attitude, we are all fed up with the FSA and its dictatorial unaccountable situation, maybe he should consider building into the new FSMA legislation full accountability for all the cock ups these nut jobs make and have the RDR commission ban set aside forever but changed to reflect a fairer system.

    Never happen!

  5. It’s revealing that those Lords who have experienced the fun and games involved with FSA interaction are prepared to come out and speak their minds whilst the majority probably sit back and blithely believe that the FSA is doing an excellent job.

  6. Unless he can get a move on (that is, prior to 31/12) he may as well not bother.

    The FSA is well on its way to the destruction of all small firms.

    Too little, much much much too late.

  7. One rule for us, one for them!

    Bit late to start thinking of the effects on small business !

  8. David Young is OK and one of the few that knows which way is up.
    However I can’t see where he has been successful in reducing the nonsense that is Elf & Safety.
    Moreover if the FSA/FCA can cock a snook at the TSC – what chance does Dave have? What is needed is legislation and that is as likely as one of us getting into the House of Lords!

  9. The gall of these bloody idiots make me sick !!!

    How long have we been writing to our PM and MP’s about this, and lucky to even getting a reply.

    Then this mumpty finally comes round to saying “HE” is fed up, well, Mr Young I am F++ing fuming,

    This comment is like some smart arse saying from the fence “you should have kept that stable door closed to stop the horse getting out” no shit Sherlock !!!!

  10. Not sure Lord Young’s trumpeting of his ‘Eminent Person’ exemption is going to prove helpful in the move towards better qualified advisers

  11. One further comment !

    IF the network bosses and the Life and Investment firms CEO’s had got together in the first place and said NO WAY, the RDR would have been nipped in the bud.

    Unfortunately they didn’t and we are now left with the legacy of their aversion to questioning the status quo.

    Too many high paid executives wanted to protect their jobs.

    I wonder how many will have to leave or be made redundant in the next 12 months.

  12. ken170647 youtube 8th October 2012 at 4:19 pm

    Jimmy Savile was another example of an eminent person.

  13. “I am a bit fed up with the FSA and will have a look at it.”

    When he realises the work involved to do something about it his eminency will probably not bother!

  14. The Regulators’ Compliance Code is a central part of the Government’s better regulation agenda. Its aim is to embed a risk-based, proportionate and targeted approach to regulatory inspection and enforcement among the regulators it applies to.

    Our expectation is that as regulators integrate the Code’s standards into their regulatory culture and processes, they will become more efficient and effective in their work. They will be able to use their resources in a way that gets the most value out of the effort that they make, whilst delivering significant benefits to low risk and compliant businesses through better-focused inspection activity, increased use of advice for businesses, and lower compliance costs.

    The solution to the problem is plain and the framework for its implementation already exists. So why does the government in general and the TSC in particular continue to ignore it?

  15. Haha
    There is always an exemption
    For eminent persons
    I doff my cap to thee

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