The Financial Services Authority recently published its proposals for a radical move to principles-based regulation. What will this mean for the industry and what are the pitfalls?
Market viewsAndrew Sykes, FSAOn 31 October the Financial Services Authority (FSA) published a draft of a new conduct of business sourcebook (NEWCOB), which will apply to all firms doing investment business, including life insurers and advisers. It will come into force on 1 November 2007. NEWCOB is part of a radical shift by the FSA towards more principles-based regulation. This means a move away from detailed rules, which set out procedures to be followed, in favour of higher-level rules, which concentrate on the outcomes for consumers. We are aiming to produce a NEWCOB rule book that is ...
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