Fees, leaks and red tape

Six months into a new administration, the coalition has begun to tackle the thorny issue of university fees and launched a welcome consultation on compulsory annuitisation, but it has so far shown no appetite to tackle the most fundamental issue facing the financial services industry - namely the role and status of the Financial Services Authority.

One of the dilemmas facing any administration trying to reform the FSA is that much of the regulation it is being asked to implement and interpret is being driven not by the UK’s parliament but by the European Commission. Two of the most influential pieces of legislation in recent years – Mifid and Aifm – have come directly from Europe, leaving the FSA to weave these requirements into its own rulebook, whether or not it believes in the driving theory behind these statutes. Against the backdrop of Mifid and Aifm, the FSA has been trying to introduce RDR, a process it started long befor...