The Financial Services Practitioner Panel has urged the FSA to consider the impact on retail firms of the number of reviews, projects and thematic initiatives it conducts.
Speaking on the release of the FSPP’s annual report , chairman Roy Leighton says the FSA needed take into account the industry impact of so many initiatives especially as firms are getting to grips with principle-based regulation and major European legislation, such as Mifid.
Leighton says the panel is supportive of the FSA’s move to more principles and that the industry has a mutual interest and responsibility to help achieve this goal.
Leighton says: “The financial services industry and the FSA are experiencing a period of accelerated change. Together, we all therefore need to be ready and willing to respond promptly to the challenges that lay ahead. In that respect, 2007/8 will be something of a watershed year for regulated firms, their views of the regulator’s performance and the UK’s position internationally.
“We very much welcome the FSA’s commitment to making those worthy aspirations a reality – and the industry has a mutual interest and responsibility to help achieve this goal.
“But, on a more cautionary note, the Panel has urged the FSA to carefully consider the impact on retail firms of its numerous reviews, projects and thematic initiatives, especially when firms are getting to grips with principles-based regulation and the implementation of some major pieces of EU legislation.”