The FSA has unveiled plans to review enforcement processes by drawing on evidence from industry firms and asks whether regulatory decisions should be made by individuals separate to investigations.
A statement issued this afternoon by the Financial Services Authority says David Strachan, FSA director of retail firms and sector leader for insurance, will head up the review to be completed by mid-July but will not recommend any changes which require alteration of the Financial Services and Markets Act 2000.
In particular, the Strachan review will draw upon the experience of “practitioners and others with direct experience of the FSA's enforcement processes” and then report to a sub-committee of the FSA Board, upon which the FSA’s new chairman of the Regulatory Decisions Committee – Tim Herrington – will also sit.
Review of the FSA’s enforcement processes was prompted by findings of the Financial Services and Markets Tribunal - between the FSA and Legal & General – which raised questions about the FSA’s study of firms when tackling enforcement issues.
Matters the review will consider include:
John Tiner, chief executive of the FSA will officially announce the review at a dinner in the City this evening, and is expected to say:
“After three years of operating the existing arrangements for investigations and making enforcement decisions, and in the light of the Financial Services & Markets Tribunal’s recent judgment in the Legal & General case, a review of their effectiveness is timely,” Tiner will announce.
“The review will be careful, thorough and wide-ranging, taking in every stage of the process. Work begins next week and we plan to announce the outcome in mid-July. Any significant changes proposed will, of course, be subject to consultation.”IFAonline
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