Junk the approved persons plan and keep things simple
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In response to the news that the FSA is to extend its approved persons regime, this seems to be a sledgehammer to crack a nut.
It will impose additional work and costs on companies and the regulator alike at a time when we should be streamlining processes so the industry can focus on compliance.
If the FSA wants to know where advisers are it could compile a simple list and display it on its register.
Firms that employ advisers could be required to keep the list updated without the need to extend the approved persons regime.
If advisers of firms fail to comply they should pay a penalty of, say, £5,000 for the first offence. If they offend again they should get an Arrow visit.
In the unlikely event that this simple approach does not work the full approved persons regime could be implemented later.
But we know the FSA never chooses the simple approach when it can cause maximum cost.
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