Gearing up for the FSA regime
| Published date | 01 April 1998 |
| Pages | 365-370 |
| Date | 01 April 1998 |
| DOI | https://doi.org/10.1108/eb024987 |
| Author | Simon Morris |
| Subject Matter | Accounting & finance |
Journal
of
Financial Regulation
and
Compliance
Volume
6
Number
4
Gearing up for the FSA regime
Simon Morris
Received: 11th September, 1998
Cameron
McKenna,
160
Aldersgate
Street,
London
EC1 4DD; tel: 0171 367 3000; fax: 0171 367
2000
Simon Morris read law at Cambridge and
joined Cameron McKenna (formerly
Cameron Markby) in 1980, qualifying as a
solicitor in 1982 and becoming a partner
in 1988. He is a member of the firm's
financial services group and advises
banks, insurers and fund managers on
commercial and regulatory matters. Simon
has particular experience on financial
ser-
vices compliance, and has represented
over 60 firms in enforcement and disciplin-
ary proceedings.
ABSTRACT
This paper considers the steps which an
authorised firm should be taking to
prepare
for
the
requirements
of
the
FSA. While neither the
details of the regulatory regime, nor the new
rules themselves, have been published, the
FSA's
concerns
are clear enough. Its focus will
be on the achievement of high
compliance
stan-
dards, the creation of a robust control environ-
ment and the discharge of managerial
responsibility. The paper goes on to consider
the operational
areas
upon which FSA is likely
to focus, and its
requirements
for an effective
compliance
system.
INTRODUCTION
The Government's proposals for reform of
financial services regulation contained in
the Financial Services and Markets Bill can
be analysed from a number of viewpoints.
First, from the perspective of structural
change with particular reference to the
amalgamation of regulators. Another
stance would be to examine the Bill's shift
of emphasis towards increasing public
awareness, combating financial crime and
market abuse.
This paper, though, seeks to evaluate the
Bill from the viewpoint of authorised
firms,
and to consider what steps they
should be taking in order to prepare for
the full impact of the Financial Services
Authority (FSA). It is difficult to assess the
likely impact of the FSA because the Bill
and the accompanying consultation papers,
as could be expected, concentrate more on
the establishment of the regulatory frame-
work than on how it will operate on a
day-to-day basis. However, for the reasons
set out below, a very clear sense of direc-
tion can be gained from looking at current
regulatory practice.
KEY STRANDS OF FSA POLICY
The first, and possibly most important,
point to make is that there is no room for
inertia. It is too easy for firms to say that
they are already compliant and that noth-
ing is really going to change. While there
is certainly a great measure of continuity in
purpose and personnel between the
self-
regulatory organisations (SROs) and the
FSA, this is itself indicative of change: just
look where the old regulators were head-
ing, and one gets a very clear idea of the
FSA's likely stance.
Moreover, the FSA's recent publication
of 'Meeting Our Responsibilities', while
short on detail is clear on intent, and pro-
vides the fullest indication to date as to
Journal of Financial Regulation
and Compliance, Vol. 6, No. 4,
1998, pp. 365-370
Henry Stewart Publications. 1358-
1988
Page
365
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