The same again and then some

Timon Molloy, Editor

The FSA’s Business Plan 2004/5 may represent a continuation of the work and priorities of previous years – “that is to be expected,” notes Callum McCarthy in his Chairman’s foreword – but at the same time, says Chief Executive John Tiner, “the emphasis is changing from policy development to implementation.” Mr Tiner’s energy fairly vibrates through a document whose main text appears under the heading “Chief Executive’s Plan”. He highlights some of the macro trends examined in the FSA’s Financial Risk Outlook 2004 – while the consensus leans towards global economic growth led by the US, several years of falling stock markets, followed by a switch into bonds and property, mean that equity gains will be of limited assistance to insurers’ battered balance sheets; at the same time, government retrenchment of state insurance shifts the onus increasingly on to individuals to make their own financial arrangements and plan carefully for education, health and retirement needs. Final salary scheme closures, higher life expectancy and poor financial knowledge amongst consumers, not helped by remembered low equity returns and mis-selling episodes, represent major challenges.