FSA chief executive John Tiner is continuing his crusade of clarification of the watchdog's regulatory powers by announcing the scope, form and timing of the review of its enforcement processes.
The FSA said the review would be led by FSA director of retail firms and sector leader for insurance David Strachan.
The review would consider:
·The processes followed by supervisors, enforcement staff and decision-makers when considering possible breaches of statutory or regulatory requirements and the nature and extent of the communications and interactions between them;
·The role and involvement of senior FSA management throughout these processes;
·The options for a fair procedure under which regulatory decisions are made by people separate from the investigators
·The accountability of decision makers to the FSA Board.
The FSA said it would consult with the financial services industry throughout the review. It will also meet with practitioners who have experience of its enforcement process, it has been announced.
Tiner will tell a City audience this evening: “In the light of the Financial Services & Markets Tribunal's recent judgment in the Legal & General case, a review of their effectiveness is timely.
“Work begins next week and we plan to announce the outcome in mid-July. Any significant changes proposed will, of course, be subject to consultation.”
