FSA and OFT to collaborate on improving regulation
To do this it will be:
• working more effectively together, for example through improved collaboration on matters of mutual interest such as the sale of Payment Protection Insurance (PPI);
• collaborating more closely on enforcement of rules on advertising and other matters, and on guidance to business. For example, in April 2006 the FSA will consult on a change to its rules so that advertisements subject to dual regulation need contain only one risk warning;
• completing a feasibility study by September 2006, on ways to reduce the administration burden on firms either seeking authorisation from, or regulated by, both organisations; and
• working more closely together on consumer education and providing information to consumers.
A feasibility study on greater alignment of the FSA's consumer contact centre with the OFT's Consumer Direct service will be completed by October 2006.
These improvements, and others like them that will be included in the Action Plan, will help reduce the administrative burdens on firms and assist in the delivery of risk-based regulation, the key objectives of the Hampton Report. As such, and following consultation with stakeholders, the Government has concluded that a significant better regulatory outcome is achievable without changing regulatory responsibility for consumer credit.
John Tiner, FSA chief executive, said: “The FSA and OFT have a common interest in delivering better regulation benefits. Building on our existing liaison arrangements we have identified improvements to our processes and practices that will benefit consumers, firms and our organisations.”
John Fingleton, OFT Chief Executive, said: “OFT and FSA interests coincide in a wide range of areas, from ensuring that
markets work well, to informing, empowering and protecting consumers. We believe that we can and should work more effectively together to the benefit of all our stakeholders, to deliver