The Parliamentary Commission on Banking Standards has hit out at the FSA over the volume of information requests it sends to firms and the strict deadlines it imposes.
FSA chairman Lord Turner and FCA chief executive designate Martin Wheatley were grilled by MPs last week.
Cross-bench peer Lord Andrew Turnbull said: “The deadlines for data requests are getting shorter, firms are being asked for a very specific form which does not relate to how the firm collects its data and sometimes the purpose for the data being sought is not clear. Are you looking at how best to collect data and is there some check to ask whether you need this data and in this particular form?”
PCBS chair Andrew Tyrie hit out at a voluntary financial inclusion questionnaire sent to firms asking for data about staff on issues such as race, marital status and sexual orientation.
Turner defended the regulator, claiming data collection is crucial to effective regulation through core reporting requirements and ad hoc requests for thematic reviews, enforcement action or a new supervisory programme.
Wheatley added: “We will try to be proportionate and if we send out information requests we do not do it lightly as we know there is a cost to the industry in doing so.”
Bloomsbury Financial Planning partner Jason Butler says: “There is always room to reduce bureaucracy and forms but the reality is that regulated business is not for the faint-hearted.”