The review will focus on changing requirements that are more restrictive than required, do not deliver benefits to justify their costs or are inconsistent with the FSA’s focus on senior management responsibility.
Under the proposal the Money Laundering sourcebook will be replaced with brief, high-level provisions in the Senior Management, Systems and Controls sourcebook. The FSA believes this will put a clear focus on senior management responsibility for Anti-Money Laundering systems and controls.
The Approved Persons regime will also be streamlined. The current 29 controlled functions will be merged or removed, along with the need for approved person status for individuals dealing only with wholesale customers.
The FSA’s rules on Training and Competence will also be simplified and will also not apply to individuals who only deal with wholesale customers.
Callum McCarthy, FSA chairman, said: “We’re determined to be more rigorous about the costs and burdens that regulation imposes on firms. We’re simplifying our Handbook requirements and the way we express them which will help all firms, but particularly small ones who do not have access to expert advice.”
Chris Cummings, director-general of AMI and AIFA, said he welcomed news the FSA has noted that rules can be over-structured and can interfere with business.
But he added: “Simplification is not without risks – detailed rules give firms a safe harbour. We will be looking at it closely.”
London-based sole broker Roy New said: “It goes straight over one’s head. The changes are incredibly intense. Thank God for AMI and others who break it down. I really rely on my membership with AMI
as well as the Institute of Financial Services.”
