The FSA launches consultation on regulation of individuals

http://www.fsa.gov.uk/pdf/cp26.pdf (178kb)

The CP explains how the FSA proposes to exercise the powers provided by the Bill. It covers:

The scope of the regime, i.e. which individuals (as detailed in para 26) will be affected;

The entry criteria that will be used to approve individuals; and

The implications of approval for the individual, including draft Statements of Principle and Code of Practice.

A summary of the document is attached to this release.

Howard Davies, Chairman of the FSA said:

"One of the key principles set out in the Financial Services and Markets Bill is that the FSA should regulate in a way that recognises the responsibilities of senior management in firms.

These proposals represent a flexible and durable approach to our regulation of managers and other individuals who deal directly with customers. They describe the type of individuals who will need approval from the FSA, the criteria against which these applications will be judged, and the standards of behaviour we will expect of those when approved. The framework outlined would accommodate any changes in the FSA''s regulatory scope and developments in business practice."

The FSA is holding a workshop on "Consultation Paper 26: the regulation of Approved Persons" on 15th September at the Royal Lancaster Hotel, Hyde Park, London. The workshop is intended to provide a forum at which senior speakers from the FSA and the industry can give their views on the proposals in the CP. This event will be an important part of the consultation process. Booking details available from 01483 720707.

Notes for editors

At present, there are approximately 157,000 individuals registered by the SROs and 27,000 individuals vetted by statutory regulators (Annex C of the CP contains a breakdown of these figures).

The consultation period for CP26 ends on 15 October 1999.

Copies of CP 26 are available on the FSA website at http://www.fsa.gov.uk/pdf/cp26.pdf, or from the FSA publications department (price 10) on receipt of a cheque made payable to the FSA.