Don't cry wolf over regulation says BDO

Despite concerns over regulation levels increasing drastically as a result of the financial crisis, these fears are actually unfounded, as regulation has only increased by six per cent year on year, points out BDO’s Financial Services Group.

In comparison to the same time last year (January 2009 vs January 2008), the FSA’s handbook had only been extended by 497 pages; a minor increase when compared to 2007 when the new MiFID and CRD rules resulted in some 2,000 additional pages being added to the handbook.

Fiona Raistrick, Head of Regulation, at BDO, says: “The last few months has seen a number of companies and organisations calling for prudent increases in regulation, with some even going as far as calling for a halt in new regulation.  However, these fears are unsupported as the FSA’s handbook has actually only increased by a marginal six per cent year on year.” 

“Whilst we were surprised at this small increase, it appears as if the FSA is endeavouring to uphold its principles based approach, rather than moving towards a more prescriptive regime like some have anticipated,” continues Raistrick.

Further supporting this principles base approach, the upcoming FSA requirements (including changes to liquidity regimes, banking conduct of business rules, stress testing and scenario analysis changes) are only likely to add a further 100 pages to the rulebook.

“Once the FSA publishes its Business Plan in February this will give the industry a much better idea of what we can expect for the remainder of the year,” concludes Raistrick.

ENDS
For more information, please contact Dee Crooks at BDO on 020 7893 2761/07815 172 051 or email dee.crooks@bdo.co.uk  

Notes to editors:

BDO’s Financial Services Group is the fastest growing sector in BDO and covers a number of areas including insurance, banking, funds, internal audit, regulatory issues, retail financial services and investment management.

BDO LLP operates across the UK with over 3,000 partners and staff. BDO LLP is a UK limited liability partnership and the UK Member Firm of BDO International. BDO International is a world-wide network of public accounting firms, called BDO Member Firms, serving international clients. Each BDO Member Firm is an independent legal entity in its own country. The Belfast Firm is operated by a separate Partnership.

BDO LLP and BDO - Belfast are both authorised and regulated by the Financial Services Authority to conduct investment business.

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