The ABI has welcomed the publication of the FSA's business plan for 2007/08.
Stephen Haddrill, ABI director general, commented: “The FSA's commitment to principles-based regulation is good news for customers and companies. The ABI has long argued for less prescription and more high-level principles in the regulation of financial services. This changes the job of the regulator, and its relationship with companies. We accept that, as part of this, the FSA will need to invest in training and retention of its staff.
“We're also pleased that more emphasis is to be placed on improving financial capability. It is vital that consumers are given the tools to make informed decisions about financial services, particularly as we move towards the proposed new pensions system. The insurance industry looks forward to working with the FSA and others on this important issue.”
Earlier today, the FSA announced a 10% hike in its budget and earmarked £50m over the next three years to help its staff implement the change to more principles-based regulation.
