The Financial Services Authority (FSA) has made progress towards a principles-based regulatory regime by publishing a policy statement which outlines how the industry guidance system will operate.
The FSA’s Policy Statement 07/16 outlines the role of industry guidance and the standards that will be applied by the FSA in recognising guidance produced by organisations such as trade associations and professional bodies.
The policy statement sets out the process for these bodies to follow in order to get FSA confirmation for particular sets of industry guidance and describes the confirmation criteria established by the FSA to ensure that confirmation requests are dealt with consistently, efficiently and effectively.
The paper makes clear that industry guidance will supplement the FSA’s rules and will not replace them. Although the use of industry guidance is encouraged, it is entirely up to industry bodies whether to take forward initiatives of this kind. Furthermore, it is not a move to strip the FSA’s Handbook of its guidance. The FSA will continue to produce guidance where it feels that it is required.
The paper also clarifies that the FSA will not take action against a firm which has complied with recognised guidance covering the issue concerned.
ViewPS07/16: FSA confirmation of Industry Guidance - Feedback on DP06/5, 4 September 2007
This publication is written as a general guide only. It is not intended to contain definitive legal advice which should be sought as appropriate in relation to a particular matter.
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