UK FSA to reduce regulatory burden

A more principle-based method of regulating firms and a reduction in the cost and burden of regulatory rules is on the agenda for the UK’s Financial Services Authority.”Currently our approach to regulation is a hybrid of high-level principles and detailed rules and guidance,” John Tiner, FSA chief executive, says. “While this broad structure is both necessary and desirable, we aim, where we can, to change the balance significantly towards a more principles-based approach.”The FSA may reduce the disclosure requirements, which demands that shareholders must notify a company if they acquire or dispose of a major stake in it.The FSA is trying to increase transparency over customer charges in the insurance industry by requiring that companies provide clear payment and pricing mechanisms, which will ultimately improve the speed and clarity of contracts.