View more on these topics

FSA could be reformed to reduce regulatory burden

The Financial Services Authority could be reformed to reduce the regulatory burden on small businesses, under plans revealed in the chancellor’s pre-Budget statement last Thursday.

Chancellor Gordon Brown pledged to ease the regulatory burden on small businesses – which would benefit IFAs and brokers – following Hampton Report recommendations.

Philip Hampton, a former finance director at Lloyds TSB and chairman of supermarket chain J Sainsbury, has spent the past eight months consulting with 200 businesses to compile his report on how the 59 national regulators and 468 local authorities enforce regulation.

His interim report, Reducing administrative burdens: effective inspection and enforcement, published last week finds room for improvement. It says compliance is too focussed on inspection rather than advice and states regulation is applied inconsistently with a disproportionate amount of paperwork piling up on small firms.

Hampton’s solution is more and better tailored advice, fewer and more simplified forms for business and the potential for reform of the regulators.

Hampton says: “I was concerned by the complexity and inconsistencies in the inspection and enforcement system, and the different interactions that a typical business has with its regulators.

“Our consultation is an opportunity for businesses, regulators and consumers to have their say on our ideas, and I would encourage all stakeholders to contribute.”
Brown says: “Britain has to take tough decisions to achieve American levels of business creation.”

The FSA claims it is doing what it can to slim down bureaucracy and the cost of regulation.
Callum McCarthy, chairman of the FSA, says: “A key question for us is what can we do to reduce the FSA’s contribution to the cost of regulation? One of our priorities for the coming year will be to examine the impact of our regulation on this sector and look for opportunities to reduce the burden where the impact of regulation is disproportionate.”


On the beat

It might well look like something out of a horror film. Just as intermediaries were beginning to feel that memories were fading following the October 31 introduction of MCOB, a new horror dawns. Creeping and stalking, ready to pounce on unsuspecting prey in early 2005, is ICOB.

Mortgages plc enhances product range

Mortgages plc has launched a series of strategic product enhancements designed to position the company as the UKs leading non-conforming lender.The range of product enhancements launched by Mortgages plc include:* A choice of stepped or rolling discounts available on all products, three-year stepped discount with initial discounts up to 2.25% and no early repayment charge […]

PMS withdraws exclusives from M2000 Encore system

Premier Mortgage Services will be withdrawing all itsexclusives from the M2000 Encore sourcing system until further notice, with immediate effect.PMS says it has come to its notice this week that should a PMS member transmit a mortgage application through the Mortgage Trading Exchange, via the Encore sourcing software, they will not be recognised as a […]

Commitments Protection intergrate with Trigold

Commitments Protection, one of the UK’s leading providers of ASU and home insurances to mortgage brokers, IFA’s and network organisations, has integrated with Trigold.This enables over 18,500 Prospector AAA users direct access to Commitments Protection’s product range.Via a link on the Prospector AAA software, as part of the mortgage sales process, advisors will access a […]

Why your clients need some tough love

In any relationship that matters, professional or personal, you should be upfront with someone if you think they’re making a decision or doing something they might later regret. Being honest with someone and having their best interests at heart, however hard the message, is key to building trust in any relationship. So how does this […]


News and expert analysis straight to your inbox

Sign up