Panacea claims FSA has 'overlooked' regulator's code
Online IFA community proposes the Regulator's Compliance Code as a means for parliament to assert control over the regulator.
PanaceaIFA said the 2007 Regulator's Compliance Code could be used by the Treasury Select Committee in its inquiry into the accountability of the Financial Services Authority's successor regulatory bodies.
In a message sent to all PanaceaIFA members today (19 August), Derek Bradley, chief executive, said it was no surprise that the TSC had launched an inquiry into the accountability of the Financial Conduct Authority following the FSA's "knee jerk and poorly timed response" to the Committee's Retail Distribution Review report.
Mr Bradley said: "It would seem that politicians might be unaware of the regulator's code. This is an important document and should be considered by the FSA in its makeover to the FCA.
"A regulator is not bound to follow a provision of the code if they properly conclude that the provision is either not relevant or is outweighed by another relevant consideration. But that does not mean that if it does not like one provision it can ignore all of them.
"Importantly, the code does not relieve regulated entities of their responsibility to comply with their obligations under the law.
"The code is based on the Hampton Principles and states regulatory activities should be carried out in a way which is transparent, accountable, consistent and proportionate - and that regulatory activities should be targeted only at cases in which action is needed."
Mr Bradley said under the code regulators were required to take account of the circumstances of small businesses, including any difficulties they may have in achieving compliance.
He warned: "The Regulators Code of 2007 continues to be to be overlooked by the FSA. It spells out clearly what it is not being applied to the thinking of the FSA in establishing the framework for the RDR and no doubt the FCA's future remit and obligations under this code.
"Has the FSA concluded that the concerns of so many, including MPs, in regard to the RDR are not relevant or are totally outweighed by other relevant considerations?
"Perhaps this an opportune moment for Andrew Tyrie to suggest that if the FSA cannot submit to Parliament because of FSMA 2000, perhaps they can be brought under some control by The Regulators Code.
"After all, the FSA expect you to adhere to a myriad of codes and rules, a little something in return would not go amiss?"