The FSA is running the risk of undermining TCF after announcing it will accelerate the full integration of the initiative into its day-to-day regulation of firms, the Financial Services Consumer Panel (FSCP) warns.
The regulator announced this week firms will be tested on TCF as part of its standard supervision procedures, which currently include Arrow visits, from January instead of September. It added it will no longer publish a final report on whether firms adequately met its December deadline to demonstrate TCF which was due to be published next autumn. For principles-based regulation to work, the FSCP says, effective implementation of TCF principles is "crucial". It adds it is "seriously concerned" by the FSA's announcement. "The FSA is taking a calculated risk in assuming firms will have e...
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