The chancellor Gordon Brown has pledged to cut down demands for information, forms and reporting requirements made by the Financial Services Authority.
Speaking at the Confederacy of British Industry Conference 2005 he says the pre Budget Report on December 5 will introduce 10 new simplifications and deregulatory measures which will cut demands for information, forms and reporting requirements.
He says this will cut, “15% disclosures of change of control and up to 20 FSA consultations each year.”
He also blasted the regulatory approach followed by successive governments for more than a century as “outdated.” Brown is instead looking to embrace a more modern model of regulation, taking a risk based approach.This approach he says is based on “trust in the responsible company, the engaged employee and the educated consumer, leading government to focus its intention where it should be.”
He says there should be no inspection without justification, no form filling without justification, and no information requirements without justification.
Brown says the new model of regulation can be applied to the regulation of financial services.
New legislation published before Christmas will make the risk based approach a statutory duty of the regulators and claims it will save businesses up to 300m a year in administrative burdens.