Skip Page Banner  
Skip Navigation

Progress on Key Issues in the FSA Business Plan 2011/12, Contributed by Adrian Brown and Sam Robinson, Nabarro LLP

Monday, November 28, 2011

Every year, the Financial Services Authority (FSA) publishes its business plan which outlines its key priorities for the coming year. When the FSA published the Business Plan 2011/12 this April, unlike other years there was also the additional challenge of managing the regulatory reform agenda of dividing the FSA's responsibilities between the new regulatory authorities of the Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA). This article summarises a number of the issues raised by the FSA in its latest Business Plan, and the subsequent steps that the FSA has taken in relation to these issues, which relate to certain key developments in compliance systems and obligations that will be placed on firms.

Delivering the New Regulatory Reform Agenda in the UK

Since the announcement in June 2010 of the division of the FSA's powers between two new authorities, the FSA has been working to implement the introduction of the PRA and the FCA. The FSA acknowledged in the Business Plan that the process will be progressive in nature and that the FSA will work with the Bank of England to ensure an efficient and effective transition. Clearly, dividing the current FSA responsibilities between the new institutions will be a complex and resource intensive task, in addition to the FSA's "usual" regulatory responsibilities. Since the Business Plan was published, the FSA has moved towards working under the new structure and has shifted its internal organisation into the business units that will, in time, move across to the PRA and the FCA respectively. The FSA has also produced and contributed to a number of publications and given many speeches relating to the new regulatory regime, including the FCA Approach to Regulation in June 2011.1 The steps taken to date suggest that the regulatory reform agenda is on target to be implemented in early 2013 as planned. In relation to the cost of regulatory reform, the FSA estimates that creating the FCA will cost up to

To view additional stories from Bloomberg Law® request a demo now