General information

 

Principles-based regulation means:

  • a move away from dictating through detailed, prescriptive rules and supervisory actions how you should operate your business;

  • giving you the responsibility to decide how best to run your business while also delivering the regulatory outcomes;

  • greater reliance on principles and outcome-focused, high-level rules, and less reliance on prescriptive rules;

  • a different approach to how we deal with you. We will focus more clearly on the outcomes we want to achieve, leaving more of the judgement calls to do with how to achieve those outcomes to you;

  • a continued need to rely on detailed rules and prescriptive processes in certain areas, to ensure adequate consumer protection or sufficient consistency between regulated firms. Also, when implementing EU legislation, we might need to include more detailed rules in our Handbook.