The FSA is to increase its expenditures next year by 3.1%, aiming to spend more time and resources o...
The FSA is to increase its expenditures next year by 3.1%, aiming to spend more time and resources on what it believes to be five several areas.
One such area is consumer protection. The regulator has promised it will devote more time to identifying potential threats such as exaggerated claims in financial promotions or from undisclosed product risks.
Howard Davies, chairman of the FSA, said: 'We plan to devote more resources to monitoring the retail markets, to analysing new products and the financial promotions that go with them and to proactive policing of such promotions.'
Enforcement is another key focus, with the regulator planning to up its staff in this division by 10%.
International regulatory developments will be examined as regulatory change in the UK is increasingly driven by developments in European Union financial services legislation, Davis noted.
Resources are to be increased in the FSA's Listing Authority and to improve internal links with that division and other parts of the FSA. Davies said: 'Recent experience has shown the existing listing rules may fail to highlight risks for investors in certain types of prospectus. We will also bring in special expertise related to those listing documents, which may be particularly marketed to retail investors.'
Consumer education is also to become key, he added, especially in light of Sandler's recommendation the FSA steps up its efforts in this area. He said: 'We recognise the need for more public awareness activity on consumer borrowing and debt and our consumer education and information materials will tackle these issues.'
The budget for the FSA's mainstream regulatory activities for 2003/04 is £200.5m.
The regulator plans to accommodate the extra costs these projects will encompass through efficiency savings it made over the past year, which amounted to some £8.6m.
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