Treasury proposes FSMA changes to free up FSA and industry

Retail and wholesale financial services firms are expected to see significant changes to the way they are regulated under a 10-point action plan announced by the Chancellor in his Pre-Budget Report on 5 December. HM Treasury has already published a paper that proposes changes to the Financial Services & Markets Act to “remove restrictions, requirements, inconsistencies and anomalies which relate to how the Financial Services Authority operates”. The document is the result of a two-year review of the FSMA and is designed to make financial services regulation “a lighter touch”.