FSA 'should not monitor compliance process'

Fay Goddard, deputy director general at Aifa, says the move to principles-based regulation should mean firms have the flexibility to reach compliance with principles by their own means. As one example of how rules could be applied, she says it should not matter in complaints-handling whether firms respond within two days or two weeks but argues it is instead more important they deal with the complaint in a timely manner and give a good response. At the moment, compliance with regulation is process-driven, so Aifa is calling on the FSA to move away from this approach by ensuring they do...