The FSA must do more to streamline and fully integrate its processes and structures, and increase its focus on demonstrating the actual outcomes it achieves for consumers and markets, according to a report from the National Audit Office.
Today's National Audit Office report is the first assessment of the FSA's performance. It was conducted at the invitation of HM Treasury.
The National Audit Office consulted a wide range of the FSA's stakeholders. Concerns were expressed on the number of rules in the FSA Handbook, the implementation of principles-based regulation on the ground and the need for the FSA's approach to reflect the actual experience of consumers. The majority of stakeholders had broadly positive views on the FSA's performance in the five areas examined.
Sir John Bourn said today: “The FSA has done well in managing the merger from 11 regulatory bodies to become one of the world's first unified financial services regulators. In doing so, it has created strong and effective structures.
“But the challenge for the FSA is now to move to the next level. It must do more to demonstrate its impact; to get a clearer understanding of how much its different activities cost; and, crucially, to streamline its processes and advice, to benefit industry and consumers.”
