Securities And Banking Update - It’s All In The Balance

Central to the FSA’s work in the coming year is the move towards "more principles-based regulation". In launching its business plan for 2007/08, John Tiner said that the move would result in significant benefits for firms, markets and consumers, and an FSA better equipped to face future challenges and deliver better outcomes for its stakeholders.

How easy will such a move be? Evidence of serious intent can be seen in the FSA setting aside a budget of £50 million over the next three years to support this initiative, in particular by improving the effectiveness of its staff and its knowledge management systems.

This is serious money. Why might the change cost so much, given that many senior people in the financial services industry have always supported this approach? Put another way, how did we get into this position in the first place?