Industry warns against regulatory substitution

Its comments follow proposals from the FSA recommending it gives confirmation to guidance issued by trade and professional bodies in order to provide a “sturdy breakwater” to firms and reassure them they are meeting the regulator’s requirements. In its response to the FSA discussion paper, the ABI says industry guidance should supplement FSA rules, rather than replace them, and any move towards high-level rules should stand up on its own merits and not depend on the existence of industry guidance. But it raises concerns about “mixed signals” from the regulator, stating: “However, on rece...