FSA Annual Report 2006/07 - Better Regulation Ltd

Section three – Improving our business capability and effectiveness
FSA Annual Report 2006/07
43
Improvements to our
Authorisation and
Approvals regimes
Following a review of our
Authorisation manual we deleted it
from our Handbook. Instead we
provide firms with information on
the authorisation section of our
website, which can be updated
quickly and easily. This decision was
partly influenced by our desire to
maintain the competitive position of
the UK financial markets. The
regulatory framework, and in
particular the authorisation process,
is a factor in determining where
firms set up business. During the
year we have worked closely with
several agencies: Think London, the
foreign direct investment agency;
The Economic Development Office
of the City of London Corporation;
and a number of UK trade and
investment offices, particularly those
in New York, Chicago, Atlanta and
Mumbai, to improve international
businesses’ understanding of our
requirements. These discussions have
contributed to overseas companies
choosing to set up offices in the UK
instead of other jurisdictions.
In 2006 we published a combined
Feedback Statement and
Consultation Paper on proposed
reforms to our Approved Persons
regime, and in January and February
2007 we published our final Policy
Statements. We have removed the
requirement on firms to submit an
annual significant management
function report and have deleted the
sole trader function. We estimate
that our proposals will save firms
around £3m a year in administration
costs.
Enforcement settlement
procedures
Following the outcome of our
Enforcement Process Review we
introduced new executive settlement
procedures. 2006 was the first full
year of using these new procedures.
Settlement allows us to ensure
prompt redress and remedial action,
explain to industry the standards we
expect and move on to focus on the
next important issue. In 2006/07
most enforcement cases were settled
before reaching the Regulatory
Decisions Committee – two-thirds of
disciplinary cases settled and all
cases involving a financial penalty
settled during the first settlement
phase, receiving the full 30%
discount on the financial penalty.
Further information on our
enforcement activity can be found in
Appendix Five of this Report and in
the Enforcement Annual
Performance Account, published on
our website.
Fees
Payment of regulatory fees and
levies by instalment has continued to
be popular with firms. We have
advertised the availability of this
payment option through our
website, communications with small
firms and on the invoices we issue to
firms.