Understanding your business risks

In its quest to simplify regulatory matters, the FSA is aiming to loosen its grip on companies and instead pass more responsibility on to them

Is your FSA compliance risk-based or rules-based? Do you know the difference? And why should you care? With the growth of regulation in financial services over the past 15 years, I believe the FSA felt prescriptive and rules-based regulation had gone too far. In some cases, the volume of rules was clogging up the business process and draining too many resources of both the company and the regulator to execute a checking process on the growing layers of rules. In some cases, these prescriptive rules have proved damaging - solvency rules for life assurers and the imposition of personal ...