Changing expectations

Principles-based regulation calls for a departure from the comforting tick-box approach to compliance so how will this affect the role of compliance officers? In this article Nathan Willmott and Polly James of law firm, Berwin Leighton Paisner explain what the transition will mean for compliance professionals and senior management.

The Financial Services Authority’s main selling point for its move towards a more principles-based system has been that each firm will have the flexibility to shape its compliance procedures in a way that complements its business and helps to support rather than hamper achievement of the firm’s commercial objectives. Rather than be compelled to implement a system of prescriptive rules laid down in the FSA Handbook, firms will now have the chance to step back and consider how best they can achieve the ‘outcomes’ that are laid down in the Principles.