'Principles-based regulation needs consistency'

In its Annual Report 2005/06, the Panel says many small firms struggle with aspects of principles-based regulation and it has highlighted their concerns in a letter to John Tiner, chief executive of the Financial Services Authority (FSA). In particular, the Panel believes broad consistency of implementation across the FSA will be crucial to ensure the success of principles-based regulation. It states: “The FSA needs to continuously articulate what it means by principles-based regulation, to address the concerns of firms over a perceived lack of clarity and the possibility of arbitrary a...