In his speech, Sir Callum McCarthy, chairman of the FSA,
said: “There’s a constant flow of new EU rules. Firms and trade associations, even when they are committed in theory to principles rather than rules, in practice often show a stubborn attachment to particular rules which the FSA seeks to abolish; and within firms, we often find that the increased reliance on principles which the FSA seeks is supported by chairmen and CEOs, but opposed by compliance officers and lawyers who prefer the certainty of rules. We are committed to a rebalancing between principles and rules, because we believe it will enable the FSA better to discharge its statutory duties.”
Kim Barrett, proprietor at KS Barrett & Associates, said: “I don’t think it matters too much how the regulator decides to regulate as long as mortgage intermediaries know how to operate in the rules or guidelines.”
