FSA’s costs rise to cover staff pay and changes to the enforcement regime

The UK regulator has announced a slight increase in its budget for the next financial year but what work has it got planned? IR&A looks at the FSA’s recent budget and plan for 2006/7 to find that internally its focus will be on staff development while its policy for the industry will continue to embed principles of better regulation.

The Financial Services Authority (FSA) has undergone a series of changes in the relatively short space of time that it has become the single regulator for financial services in the UK. Its remit has increased, taking on mortgage and general insurance brokers from October 2004 and January 2005 respectively and it faces new regulatory issues each day. In line with the changes, the FSA’s budget is tested each year.