Other Themes
Thematic reviews have been a well established part of FSA's approach to regulation. They are one aspect of the FSA's regulatory philosophy of "outcomes focused relation" which focuses on judging the consequences of the actions of the firms and individuals the FSA supervises. Thematic work plays a particularly important part in the regulation of smaller firms, with which the FSA does not generally have an ongoing supervisory relationship.
Some thematic work – such as financial crime - is "big picture": extending over a long period, and relevant to all, or a substantial proportion of, regulated firms. Some sector-specific projects may also achieve a high profile, for example the FSA's major programme of work to implement its proposals relating to retail distribution. Other projects may be smaller in scale and narrower in focus. They may therefore attract less public attention; but for firms within their scope they may be just as important as the higher-profile projects.
The FSA have committed to delivering on their 2010/2011 business plan, which sets out the focus for the next few months. This includes a tougher supervisory approach, investment in enforcement to promote a credible deterrence and redesign of global banking regulation.
In particular the FSA will:
- continue their focus on intensifying prudential supervision, looking at areas such as reviewing accounting policies, examining remuneration policies, and recovery and resolution plans;
- implement changes that will strengthen the prudential resilience of firms;
- continue their work programme on client assets, as set out in the client money and assets report published in January 2010;
- make improvements to the efficiency and fair operation of markets through work on short-selling, the OTC derivatives markets and UKLA reforms;
- continue to aggressively pursue criminal prosecutions alongside civil action for market abuse and insider dealing;
- implement the RDR and MMR work programmes;
- focus on retail conduct risk issues such as mis-selling of PPI; and
- work towards implementation of a revised e-money Directive by end of April 2011.