FIRMS that successfully follow the move to principles-based regulation will be rewarded with benefits such as fewer risk assessments and looser regulatory capital requirements, the FSA has said.
The regulator has outlined its vision for the full development of principles based regulation in a paper published this morning, entitled ‘Principles-based Regulation – Focusing on the Outcomes that Matter’. Unveiling the paper at a conference on the subject today, John Tiner, FSA chief executive, said the changing regulatory landscape would give firms more freedom to choose how to comply with its rules. “We believe principles which focus on an outcome are more enduring while at the same time better foster innovation and competition. “More principles based regulation is the next natural ...
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