The FSA consults further on regulation of individuals

Phillip Thorpe, Managing Director and Head of Authorisation, Enforcement and Consumer Relations, said in his introduction to the workshop:

"There are no set requirements for consultation and we are developing both ad hoc and formal methods as we increase our experience. We have come to recognise the benefit and importance of early discussions within the process, which can be developed by further debate before the consultation period ends. This workshop constitutes an important opportunity for promoting those discussions."

Speaking about the proposed Approved Persons Regime, he noted:

"What the FSA is proposing for the Approved Persons Regime is a balanced package of measures that taken together will set the standards for the behaviour of individuals in the industry. A first and preventative measure is to allow only those who we consider to be fit and proper, and who will act in a suitable manner, to enter into the industry. Secondly, we have laid down the on going behavioural expectations that we have of people employed in the industry, and which we hope will go some way to reducing the number of failures we have seen over recent years.

Even with these measures we recognise problems will occur in the future and when they do individuals will be made accountable for their actions. If they have acted in a reasonable manner and followed the Principles and Code in good faith they will have nothing to fear. The FSAs expectations in this regard will be transparent and supported by clear guidelines for meeting the standards we have set."

At the workshop, the FSA presented its ideas on the Approved Persons Regime and industry speakers had the opportunity to offer their views. Topics were then discussed in smaller groups that were divided by sector. The comments and suggestions that emerged from the workshop will form part of the consultation process and contribute to the Feedback Statement that will be published in due course.

Notes for editors

The Government announced on 20 May 1997 that it would create a single regulator for all financial markets in the UK, merging nine regulatory bodies. The Financial Services Authority (the FSA), the new regulator was formally launched on 28 October 1997.

The Regulation of Approved Persons consultation paper (CP26) was published on 30 July 1999 and a copy is available on the FSA website. The consultation period ends on 15 October 1999.