ABI: FSA proposals will benefit industry and consumers

ABI: FSA proposals will benefit industry and consumers

ABI: FSA proposals will benefit industry and consumers

“FSA PROPOSALS SHOULD DELIVER BENEFITS FOR THE CONSUMER AND THE INDUSTRY”, SAYS ABI

The FSA’s proposals to simplify the Conduct of Business (COB) rules, published today, should deliver benefits for the consumer and the industry, according to the ABI. The COB rules are being reformed as part of the move towards more principles-based regulation, and in preparation for the implementation of the Markets in Financial Instruments Directive (MiFID).

Stephen Haddrill, the ABI’s Director General, said:

“We welcome the FSA’s objectives. Consumers and industry alike need a regulatory regime that ensures fairness without creating unnecessary cost. We hope the FSA’s proposals are the start of a vital move towards principles based regulation in the retail area. It should deliver benefits for the consumer and the industry”.

The ABI particularly welcomes:

. the FSA’s commitment to less burdensome rules on advertising, which will help the industry to encourage consumers to save.
. the FSA’s encouragement for industry-led action. The ABI has led the way through its Customer Impact Scheme and its various good practice guides. More are planned.
. the opportunity to work with the FSA to help drive principles-based regulation forward as they undertake reviews of both the distribution and basic advice regimes.

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Notes for Editors

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Kelly Ostler 020 7216 7415 (Mobile: 07968 364 302)

2 The ABI is the trade association for Britain’s insurance industry. Its nearly 400 member companies provide over 94% of the insurance business in the UK. It represents insurance companies to the Government, and to the regulatory and other agencies, and is an influential voice on public policy and financial services issues. ABI member companies hold up to a sixth of all investments traded on the London Stock Exchange, on behalf of millions of pensioners and savers.

3. An ISDN line is available for broadcasts.

Copies of all ABI news releases, together with other information from the Association, can be seen on our website http://www.abi.org.uk

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