Practitioner Panel Annual Report 2001

United Kingdom
The Practitioner Panel reports that its principal functions are:

  • To monitor FSA’s efficacy as seen by industry;
  • Communicating issues of general concern to FSA;
  • Responding to FSA when requested with the practitioner view on key regulatory issues;
  • To contribute a broad industry view on the formation of FSA’s policy. The Panel seeks to exercise influence in a low profile way at senior level, although it can take a higher profile when necessary and make formal representations as needed.

The Panel Chairman regularly meets the Chairman of FSA, although there are frequent informal contacts with directors and senior executives who attend its meetings and take informal soundings.

Consultation

The Panel is consulted on FSA’s emerging policies. It reviews formal consultative papers prior to publication, but does not provide a formal response to them as this is better left to the industry. The Panel receives feedback from FSA at the end of each consultation process.

Concerns The Panel has expressed some concerns which are as follows:

  • FSA’s move to risk based regulation, and the resulting proportionality of approach, needs to be translated from policy to operations;
  • The process and quality of some of FSA’s research which it uses to back change needs to be improved;
  • The way in which a Financial Ombudsman Service decision may have the effect of creating a new rule without either pre-consultation or the governance process which FSA must observe, is of some concern;
  • To ensure that FSA’s procedures focus on material rather then trivial matters.

Contact invited

The Panel invites firms to contact it in respect of significant matters where it is felt that its involvement could be productive.

For further information please contact Simon Morris on +44(0)20 7367 2702 or by e-mail at simon.morris@cms-cmck.com.