Principles-based regulation is no easy option - ABI

The Financial Services Authority’s (FSA) shift to principles-based regulation is “not a soft option” for the insurance industry, warned the Association of British Insurers (ABI) in a recent report on regulation of the sector. The ABI said that while it supports a move away from the “prescriptive” rule-book that has “led to an excessive focus on process by both the industry and the FSA”, a principles-based regime will come with its own challenges.