Regulation levels have barely increased since the beginning of the financial crisis, according to BDO Stoy Hayward.
The firm says parts of the industry are 'crying wolf' by claiming regulation has exploded since the collapse of Northern Rock, and says the number of rules only increased by 6% during 2008.
BDO's Financial Services Group believes regulation can be measured by the number of pages in the FSA's handbook, and says the book has barely grown in the past twelve months.
When comparing changes to the handbook introduced this month with changes introduced in January 2008, BDO says the handbook has only been extended by another 497 pages.
This compared with over 2,000 pages in 2007, when new MiFID and CRD rules resulted in a rapid expansion of the handbook.
Fiona Raispatrick, head of regulation at BDO Stoy Hayward, says: "The last few months has seen a number of companies and organisations calling for prudent increases in regulation, with some even going as far as calling for a halt in new regulation.
"However, these fears are unsupported as the FSA's handbook has actually only increased by a marginal six per cent year on year."
She claims the small increase in written rules underlines the FSA's commitment to principles-based regulation, and it has not moved towards a prescriptive regime.
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
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