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Tuesday 24th of August 2010

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September 6, 2007

FSA framework for industry guidance

by Gill Montia

Story link: FSA framework for industry guidance

The Financial Services Authority (FSA) has introduced a new framework for recognising industry guidance, which forms an important part of the authority’s plans to move towards principles-based regulation.

The framework allows trade associations, professional bodies and companies to seek formal confirmation for the guidance they produce to help their members understand and comply with the FSA’s regulatory requirements.

While such organisations are already providing guidance on regulatory matters, the new formalised system of FSA confirmation will allow all concerned to focus on the key elements of Principles-Based Regulation.

A policy statement is now available from the FSA, setting out the role of industry guidance and the standards that will be applied by the FSA in recognising this.

It determines the process to be followed in seeking FSA confirmation for particular sets of industry guidance and sets out the criteria the FSA has developed to deal with confirmation requests.

It also states that industry guidance is intended to supplement FSA rules and not replace them and that while the use of industry guidance will be encouraged, industry bodies themselves will decide their level of involvement.

Finally, the policy makes it clear that the FSA will not take action against an organisation that has complied with recognised guidance with respect to a particular issue.

A post-implementation review of the industry guidance process will take place in the first quarter of 2010.


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