The FSA has claimed it is successfully changing the behaviour of small firms and is on target to double the number delivering fair outcomes to customers.
In its latest business plan, the regulator reviews its Assessment Programme which, by the end of the summer, will have directly assessed 6,600 retail intermediaries and 200 retail asset management firms through face-to-face and telephone-based assessments.
It says: "At the end of the programme, we will be able to demonstrate clearly and measurably, that our direct engagement has changed small firms' behaviours in a real and sustained way."
The FSA says, at the beginning of the programme, only 40% of small retail intermediaries were able to demonstrate they consistently delivered fair outcomes to their customers.
It now says it is on target to double that figure to 80%.
The FSA also confirms it will adopt a new proactive, risk-based supervisory approach after the completion of the Assessment Programme, including roadshows, assessments and follow-up visits.
Meanwhile, the regulator has confirmed its Annual Funding Requirement (AFR) for 2011/12 is £500.5m, more than 10% up on last year's £454.7m figure.
The increase will be borne by larger firms, it says, reflecting the recently increased resources applied to intensive supervision of what it calls 'high impact' firms.
However, it adds the enforcement fines the FSA imposed during the previous year are returned to the industry by way of discounts to their fees in the following year, meaning that, in total, firms will pay 2% less than last year.
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