The Davidson Review also called for clearer rules on the handling of client money.
It looked at the impact of EU legislation on the UK and concluded that while it had brought benefits, it had often over-burdened the UK industry.
Lord Davidson QC, said: “In some cases, additions made during the transposition of European legislation provide benefits to business such as greater legal clarity and the streamlining of existing domestic legislation. However, there are examples where UK implementation could be less burdensome, without harming the intended protection provided by the regulation. My proposals should enable business to compete more effectively.”
The Davidson Review found the CASS rules for handling client money were too descriptive and could benefit from being reduced and looked at from a principles-based stance.
However, it also claimed many accusations regarding the over-implementation of regulation had been over-exaggerated and highlighted the UK regulatory environment was one of the best in Europe.
Bill Warren, director of Complete Mortgage and Loans Service, commented: “For all the negativity about FSA regulation, we are allowed to do lots of things and we get round other things by being creative.
“The RMAR is not easy because of its structure. It’s not as difficult as it was – we’re getting used to it. The client money rules do need to be simpler.”
