The Financial Services Authority has pledged to cut its rulebook in half to make rules easier to understand in line with its principles-based approach.The FSA will remove around half the content of the Conduct of Business rulebook and launch NEWCOB at the same time as implementing provisions of the Markets in Financial Instruments Directive. NEWCOB will replace COB from November 1 2007, as MiFID comes into effect across the UK and the European Union. Dan Waters, director of retail policy at the FSA, says: “The move towards principles-based regulation means focussing on outcomes rather than on procedural box-ticking. “It also gives firms the flexibility to achieve those outcomes in the context of their business models. It fits with the emphasis we place on senior management responsibility – a core FSA principle of good regulation. “NEWCOB’s messages will be easier to understand and so easier to comply with, thereby helping firms to treat their customers fairly in line with a core principle of ours. But principles-based regulation does not mean relaxing the standards we expect.” Jonathan Burridge, managing director of Quantum Mortgage Brokers, says: “Regulation has a positive influence as it defines best practice, helps develop professionalism and improves consumer confidence. But it is commonly thought that the present environment is unnecessarily arduous, particularly for smaller firms.” Last week it was also reported that the FSA is planning to shrink its workforce as part of its move towards principles-based regulation. The FSA declined to comment.
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- Top trends
The Professional Mortgage Packagers Alliance has launched four exclusive products and one semi- exclusive product from The Mortgage Business. The first two deals are options in TMB’s Self 85 range that allows self-cert to a maximum LTV of 85%. The other two exclusives are in TMB’s house to house range. Both are two-year trackers with […]
New figures released from W3 Debt Solutions show that banks and other lenders should recover an average of 48p in the pound of their unsecured bad debts under W3s Individual Voluntary Arrangements schemes.Reducing bad debts will be increasingly important for lenders as bank base rates climb from their current levels of 4.75% to a predicted […]
Online marketing is a vital tool for brokers, especially as it allows small businesses to compete on a level playing field with their larger rivals.
This year’s Benchmark Study on lender technology shows lenders becoming increasingly innovative which means the true winners will be brokers, says Frank Eve
Effective communication of your pension scheme is a large part of getting auto-enrolment right. Delivering the same message to all employees is not necessarily the way to go. To assist you with the communication of your pension scheme, we have provided some key areas to think about, such as:
- What to consider when segmenting your workforce
- How to communicate to pension scheme members at the right time in their member lifecycle
- What topics you should be discussing with your pension members
- The new pension freedoms and the importance of communicating them
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