FSA to simplify approved persons regime

The Financial Services Authority has issued a consultation paper outlining a new proposal to merge the customer functions in the approved persons regime in response to feedback from the industry.

This feedback from retail and wholesale firms follows the publication of a consultation paper in July 2005 detailing a series of proposals to streamline and simplify the Handbook.

David Kenmir, managing director of regulatory services at the FSA, says: “Through our Handbook review programme, the FSA is removing regulations whose costs outweigh the benefits they bring.

The proposed merger of customer functions offers a further 1m annual saving for firms.”

The consultation paper also sets out the implications of the Markets in Financial Instruments Directive for the approved persons regime; reminds firms that it is their responsibility to carry out appropriate checks on their employees, and clarifies aspects of the FSA’s approval process.