The FSA has published a speech by Stephen Bland (Director, Small Firms Division, FSA) entitled The Future of Distribution in Financial Services. Mr Bland first discusses the Retail Distribution Review (RDR) and the move towards more principles-based regulation. He then discusses the RDR Discussion Paper that was published in June this year (Discussion Paper 07/1: A Review of Retail Distribution) and the next steps following that paper. In relation to the RDR and more principles-based regulation Mr Bland states that:
- Principles-based regulation is not light touch regulation. It is right touch regulation, being outcome focused and risk based.
- In relation to the RDR the FSA is not intending to introduce swathes of new rules. Instead the FSA will work with the market to find ways to make it more efficient, easier to treat customers fairly and make it more attractive to consumers.
In relation to the RDR Discussion Paper Mr Bland refers to some of the feedback already received. In particular the feedback received has confirmed that the FSA needs to provide more clarity on its proposals for primary advice. Mr Bland also mentions that the FSA intends to publish an interim report in April 2008 which will set out the principal areas of feedback received on the RDR Discussion Paper. The FSA will then publish a full Feedback Statement in October 2008.
View FSA speech - The Future of Distribution in Financial Services, 4 December 2007