The survey revealed that the FSA had made improvements at a day-to-day level, but highlighted that many small firms felt frustrated by the constant alterations to FSA strategy, guidelines and rulings. The FSPP revealed many firms welcomed the concept of principles-based regulation, but had expressed concern over its implementation. 52 per cent of firms also indicated that the regulator had failed to issue enough guidance on how best to implement its ‘Treating Customers Fairly’ (TCF) practices.
Commenting on the findings, Roy Leighton, chairman of the FSPP, said: “Many of the issues arising from this survey feed into the FSA’s vision for the future shape of financial services regulation. It is crucial that the key elements of that strategic plan, in particular those covering the retail sector, are clearly set out and delivered in practice if the FSA is to achieve its regulatory goals, and meet the legitimate expectations of the wider industry that it regulates.”
Responding to the study, John Tiner, chief executive of the FSA, said: “I do not find it surprising that wholesale firms are generally more content with us than their retail counterparts.
“I am pleased to see that firms welcome our focus on more principles-based regulation and while I understand their concerns about its implementation, it is inherent in the approach that firms will get less prescriptive detail than was the case previously.”
Hugh Nichols, partner at Badbury Berkeley Financial Services, commented: “TCF is a good and positive idea, but I think it should have a complaints procedure behind it.”
