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FSA/PN/084/2006
31 August 2006

The Financial Services Authority (FSA) has today issued a consultation paper outlining a new proposal to merge the customer functions in the approved persons regime in response to feedback from the industry. This feedback from retail and wholesale firms follows the publication of a consultation paper in July 2005 detailing a series of proposals to streamline and simplify the Handbook.

David Kenmir, Managing Director of Regulatory Services at the FSA, said:

"Through our Handbook review programme, the FSA is removing regulations whose costs outweigh the benefits they bring. The proposed merger of customer functions offers a further £1 million annual saving for firms."

The consultation paper also sets out the implications of the Markets in Financial Instruments Directive for the approved persons regime; reminds firms that it is their responsibility to carry out appropriate checks on their employees, and clarifies aspects of the FSA's approval process.

Notes to editors

1. Reforming the Approved Persons Regime: Consultation and Feedback to CP 05/10 is available on the FSA website.
2. There are no customer functions for mortgage and general insurance business.
3. Consultation paper 05/10 'Reviewing the Handbook' was published in July 2005 and is available on the FSA website.
4. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
5. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.