The UK Financial Services Authority has published its new business plan for 2007/8, outlining its priorities, with a strong focus on more principles-based regulation.
The document also outlines increased spending on financial capability and key investments to be made in people, information systems and the methods by which the Financial Services Authority (FSA) regulates, to facilitate toward more principles-based regulation (MPBR).
More principles-based regulation will produce significant benefits for firms, markets and consumers but we need to invest in our people and information systems to realize this change, said the FSA’s chief executive, John Tiner. This will result in an FSA that is better equipped to face future challenges and to deliver better outcomes for all our stakeholders.
The main priorities detailed in the plan are on implementing and influencing EU legislation, such as MiFID, and increasing focus on the prevention, detection and prosecution of market abuse alongside other forms of financial crime. Other areas of focus include financial capability and the review of retail distribution and payment protection insurance.
In addition, the board has approved a budget of up to GBP50 million over the next three years to improve the effectiveness of FSA staff and support its strategy to move towards MPBR.