FSA to take principles-based approach to regulation

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Regulation is required but only where it does not impose an "unnecessary burden" to retail financial services, Callum McCarthy, chairman of the FSA, said last night.

In his annual Mansion House speech to the City, McCarthy said: “Where it is within the FSA’s discretion to do so, we continue to be concerned to reduce regulation where its existence is not matched by its benefits”. He said the FSA was "acutely aware" of the costs imposed on the sector by regulation and would be carrying out a cost of regulation study early next year. In particular, McCarthy referred to the FSA’s suggestions for a more “principles-based approach” rather than prescriptive requirements in the areas of individual authorisation, training and competence and anti-money launde...

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