Financial Secretary to the Treasury Ruth Kelly announced a major review of the Financial Services and Markets Act 2000 (FSMA) following its first two years of operation, said a report.
The Office of Fair Trading is to carry out an assessment of the impact the FSMA has had on competitiveness within the financial services. In addition, the FSA is to examine ways to reduce the cost of compliance by making its handbook and guidance more accessible.
The report said the FSA and the Financial Ombudsman Service (FOS) would consult jointly on when regulatory action by the FSA should replace decisions on individual cases by the ombudsman, and on the possibility of appeals of FOS decisions.
The Treasury is also proposing changes to the boundary of regulation, particularly with regard to capital raising from investors and, where possible, financial advice.
Kelly said there was no intention to change the regulatory structure established by the FSMA, but that the government would consult publicly on any proposals for legislative changes.
The review is expected to take around one year to complete.
