The FSA responds to the Financial Services Practitioner Panel survey results...
The FSA has today responded to the latest survey of regulated firms by the independent Financial Services Practitioner Panel.
The report shows a rise in satisfaction levels for larger firms and wholesale firms since 2004. However, lower scores continue for smaller retail firms, including mortgage and general insurance firms which have been surveyed for the first time since they were brought under the FSA's regulatory scope. Firms whose insurance intermediation activities are secondary to their main business feel particularly unhappy.
John Tiner, chief executive of the FSA, said that the authority would seek to respond to the issues raised in its 2007/8 business plan.
He added: “I do not find it surprising that wholesale firms are generally more content with us than their retail counterparts. I believe this reflects our view that there are greater market failures in retail financial services which, when combined with an explicit objective set by Parliament for us to protect consumers, means there is a need for more regulatory intervention.”
He took satisfaction from the fact that firms welcomed the FSA focus on more principles-based regulation, despite concerns about its implementation. “The FSA is fully committed to working with firms and their trade bodies to make this approach work effectively for the benefit of markets, firms and their customers,” he said.
Regarding concerns by smaller firms over the intensity of regulatory change, Tiner said, “We will be looking closely at the feedback from small firms in the report and will seek new opportunities to help with the impact of regulation…”
Addressing the issue of the cost of regulation, Tiner said that by the end of 2008 the FSA will have reviewed activities which account for 80% of the administrative costs incurred by firms as a result of its rules.
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