The FSA said the changes would help remove the more prescriptive rules on advisers and place more emphasis on senior management in ensuring good working practices.
The changes are due to come into force to coincide with the implementation of the Markets in Financial Instruments Directive in November.
Dan Waters, director of retail policy at the FSA, said: “Our proposals are the result of a ‘blank sheet of paper’ review of our T&C regime and is all part of our move to more principles-based regulation. The new T&C sourcebook is much simpler, shorter and more user-friendly. There is, though, no question of lowering the competence standards we expect of firms and their staff – these play a key role in protecting consumers.”
The FSA said it hoped to be able to remove the T&C rulebook altogether at some time in the future, if advisers could prove they could follow the rules without it. It also placed emphasis on the exams on the list with the Financial Services Skills Council.
Richard Fox, chief executive of the Society of Mortgage Professionals, said there were rumours that the FSA would go further regarding exams.
“There’s been speculation that there would be changes to qualification requirements because there is no common level on which people are judged.”
But Bill Warren, compliance director at Complete Mortgage and Loans Service, said: “If it had better results from its thematic reviews then it may have gone further. The objective is still to go further but for the moment we are stuck.”
