UK's Financial Services Authority To Simplify Approved Persons Regime

The Financial Services Authority (FSA) has today issued a consultation paper outlining a new proposal to merge the customer functions in the approved persons regime in response to feedback from the industry. This feedback from retail and wholesale firms follows the publication of a consultation paper in July 2005 detailing a series of proposals to streamline and simplify the Handbook.

David Kenmir, Managing Director of Regulatory Services at the FSA, said:

"Through our Handbook review programme, the FSA is removing regulations whose costs outweigh the benefits they bring. The proposed merger of customer functions offers a further £1 million annual saving for firms."

The consultation paper also sets out the implications of the Markets in Financial Instruments Directive for the approved persons regime; reminds firms that it is their responsibility to carry out appropriate checks on their employees, and clarifies aspects of the FSA's approval process.