The FSA has outlined its vision for a more-principles-based regulatory regime.
Callum McCarthy, chairman of the FSA, commented: "We have set ourselves and the industry on a course towards more-principles based regulation. We are pursuing this with determination, but recognise there are difficult issues as well as excellent opportunities for us as a regulator, the industry and consumers."
John Tiner, chief executive of the FSA, said: "More principles based regulation is the natural next step in the evolution of our regulatory system. It will give firms more choice over how they meet our requirements bringing for many a closer fit with their business processes and more clearly placing the responsibility for key regulatory decisions at more senior levels in firms."
