FSA drops annual reporting requirement
The announcement by the FSA ending the reporting requirement has immediate effect, saving firms from having to collate and report the information this year. Until now, firms had to report by 31 July each year all approved persons with significant management function who were in position as of 30 June.
FSA general counsel, Andrew Whittaker, said: “This is a sensible and practical piece of deregulation in the context of our programme to simplify the FSA Handbook and remove unnecessary burdens. It will reduce costs for regulated firms in the industry, and for the FSA, without increasing regulatory risks.”
Tony Jones, managing director at Pink Home Loans, said: “It’s a very encouraging sign that the FSA has done this. It won’t make a significant difference, but it’s more the symbolism of it – that it is actively seeking to streamline the regulation. I’m optimistic now that it’ll come up with further measures. It’s a move towards a principle-based system, which gives a set framework and allows firms to work within them. This will allow more flexibility, as long as the FSA makes it clear what it expects.
“While this move is good, it’s the case that more regulation is needed in some areas. The second charge market needs to be looked at, as it seems anomalous that mortgages are regulated and secured loans are not. It’s not helpful and the first and second charge market should both be regulated so everyone is operating to the same rules. If the FSA can look at areas like that for regulation and streamline others, then we welcome it.”