| TRANSPARENCY – Some stakeholders in the UK are still not persuaded that this is a good thing. The regulators however, admit that they see it as important and have started a debate by collecting proposals and views on the issues raised in their report. Our ECRC conference in London in November should enable further discussion. |
Press release from the FSA:
FSA LAUNCHES DEBATE ON INCREASING TRANSPARENCY IN REGULATION
The Financial Services Authority (FSA) has today published a discussion paper which explores the creation of a framework for determining what further information the regulator might publish about firms and industry sectors.
The FSA recognises the importance of transparency and believes that increasing the amount of firm-specific and broader industry information it discloses could lead to better regulatory outcomes for firms, markets and consumers.
However, the FSA recognises that stakeholders hold strong and often polarised views on transparency, which is why the regulator wants to initiate a full and open debate that involves all those who may be impacted by its proposals.
In its discussion paper, the FSA sets out a code of practice which would provide a transparent mechanism for guiding FSA decisions about what additional information it might disclose. The paper also provides examples of the types of information the regulator may consider publishing. Importantly, the paper draws a clear distinction between simply making information available, which could in some cases cause confusion and have a negative impact, and publishing information in a way that makes issues and practices clearer and therefore improves how markets function.
The FSA already publishes a wide range of material about its activities and proposals, markets and sectors, and about the disciplinary action it takes against individuals and firms. The regulator also publishes a great deal of consumer-facing material, such as fact sheets and comparative tables.
Hector Sants, chief executive of the FSA, said:
"We believe that transparency is an important regulatory tool, and as an organisation are committed to being open and transparent. The discussion paper seeks to initiate debate on how we can better utilise transparency to achieve our regulatory aims, and in particular proposes a code of practice."
The FSA invites comments on the proposals in its discussion paper by 29 August 2008.
REMINDER: The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.
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2 recent articles from the Scotsman:
PLAN TO PUBLISH BANK LEAGUE TABLE
BANKS could be ranked in a league table based on service standards, under proposals published this week.
The Financial Services Authority, the industry watchdog, said that in a bid to make the sector more transparent, it was looking at publishing the number of complaints received by banks and their success, or otherwise, in dealing with them. The plan was welcomed by consumer groups, with the National Consumer Council suggesting it would encourage banks to improve the way they deal with customers. Comparison site moneysupermarket.com agreed. "Over a quarter of people who changed their current account in the past two years did so because of poor service," said Kevin Mountford, head of current accounts at the website. But the British Banking Association said the proposal went against the FSA's intention of not naming and shaming banks.
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SCOTLAND CAN CASH IN ON REPUTATION FOR ETHICAL BANKS
Published Date: 28 May 2008,By PETER MACMAHON
SCOTLAND'S reputation for high professional and ethical conduct in financial services should be marketed globally, according to the chief executive of the Chartered Institute of Bankers in Scotland.
Simon Thompson said yesterday that the global banking "liquidity crunch" presented Scotland with a unique opportunity to "export" its reputation for ethical business conduct.
Speaking ahead of a conference on ethics today, he said: "All banks realise that they simply must raise the customer experience by investing in higher standards of professionalism.
"Current events have added huge urgency to this."
Thompson added: "One of the big strengths of the Scottish financial services industry is our emphasis on prudence and professionalism. It's at the very heart of the Scottish brand as a home for financial services.
"This is a characteristic that Scotland now has a unique opportunity to export.
"We can say with conviction that we're better at teaching and promoting this in the banking industry than our colleagues in England and Wales, where our equivalent institutes in the banking and building society sectors no longer exist."
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| ID: |
41332 |
| Author(s): |
iff |
| Publication date: |
02/06/08 |
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Created: 02/06/08. Last changed: 02/06/08.
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