View more on these topics

NAO set to call for radical regulation rethink

Review expected to say that relationship between the FSA and the OFT is not working.

The National Audit Office review of the FSA looks set to recommend a radical shake-up of the way financial services is governed and regulated, say sources close to its inquiry.

Sources suggest that the NAO will report that the relationship between the FSA and the Office of Fair Trading is not working in areas such as economic competitiveness and price regulation, with issues such as commission slipping through the gap between the bodies.

The report could recommend structural changes or amendments to statutory duties as a way of addressing the perceived problem.

The review is thought to be examining the distribution landscape closely and how it interacts with the patchwork of regulatory bodies, including the role of advisers and the future of generic advice, and could make dramatic recommendations, say sources.

The review is also examining problems caused by responsibility for financial capability lying with the FSA such as lack of resources and the issue of industry subsidy and could recommend that this passes elsewhere.

The Treasury invited the NAO to review the FSA in June, with a remit to examine its internal performance management, links with other regulatory bodies, international influence and financial capability.

It will lay its report before Parliament in April followed by scrutiny from either the Treasury select committee or the public accounts committee, as is usually the case with NAO reports.

A spokesman says the NAO cannot comment on a report before it is laid before Parliament.

Personal Finance Society public affairs director John Ellis says: “An independent examination of the relationship between the OFT and the FSA around competition is long overdue.”

Aifa deputy director gen-eral Fay Goddard says: “We want the NAO to address the constant tide of FSA regul-atory changes hitting advis-ers, the lack of accountability and cost benefit analysis and the way that it interprets European directives.”

Recommended

Money Portal offers internal exams

The Money Portal is launching a range of internal exams and study guides for specialist qualifications across the group. TMP will no longer insist on pre-test internal courses and hopes to rekindle adviser interest in more specialist areas by removing the punitive requirements that might have previously put off advisers.

Political parties must pay if their policies fail

If people in hospitals washed their hands as often as this Government, there would be no MRSA crisis, I am sure. As we saw in James Salmon’s article last week, the Government is now saying that the 125,000 pensioners who lost their pensions should have taken advice (presumably to transfer out of their doomed scheme). […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com