FSA Transparency as a Regulatory Tool - responses from banks and consumer groups

[Amethyst]

from the Royal Bank of Scotland consultation response to FSA

Disclosures of this type would be open to misinterpretation and media distortion and risk jeopordising the consumer benefit that could follow from some of the other initiatives that you plan to pursue.

It should further be pointed out that the interpretation of statistical information is a complex science where considerable skill and experience is required to deaw valid inferences from available data. the risk of inappropriate conclusions being derive, either by individual consumers or the media, from published data could seriously hinder and not support the attainment of two of the FSA's four statutory objectives, namely;

1) maintaining confidence in the financial system
2) promoting public understanding of the financial system.

FSA's four objectives (for info)

• market confidence: maintaining confidence in the financial system;
• public awareness: promoting public understanding of the financial system;
• consumer protection: securing the appropriate degree of protection for consumers; and
• the reduction of financial crime: reducing the extent to which it is possible for a business to be used for a purpose connected with financial crime.

and

Financial Services Consumer Panel consultation response - Legal Beagles

Consumers have a wide range of capabilities and there are no reasonable grounds, in our view, for depriving knowledgeable consumers of useful information because of a risk that the less knowledgeable may be misled. Moreover, there are many commentators and journalists who can and do use information to help consumers make better decisions.

August 2008


National Consumer Councils Response (apologies for poor quality) = Legal Beagles

. The FSA may want to impose some conditions on
the publication of this information to avoid the risk of misinterpretation; however we encourage it to keep this to a minimum in order to allow these communications experts to provide information to their readers in a user-friendly format.

[Amethyst]

Re: Transparency as a Regulatory Tool - consultation documents


A confidential letter from Angela Knight, chief executive of the BBA, to Victoria Raffe in the FSA's strategy and risk division, claims there will be "unnintended consequences" to the proposals outlined in May's FSA DP 08/3 paper Transparency as a Regulatory Tool.


Ms Knight wrote: "We are concerned that some of the proposals run significant risks of unintended consequences. For the most part the industry and the FSA enjoy an open and constructive dialogue."

"Supervisory teams at the FSA provide a great deal of helpful feedback to individual firms and indeed the FSA has recognised the need to enhance the capability of its staff to do this as effectively as possible."

"Similarly, the flow of information provided to the FSA by the industry on a voluntary basis is a demonstration of this."

"However, owing to the proposals within FSA DP 08/3, there is significant concern as to whether specific voluntary information might be publicly disclosed at a later date."


"We have undertaken a review of the relevant EU directives and the evidence would suggest that the approach taken under these directives would prevent the FSA from publishing firm specific data in the manner outlined in the discussion paper."


The BBA "supports regulatory transparency in principle" as well as "the FSA's objective of stimulating competition in financial services by increasing customers' financial awareness, capabilty and confidence".



source = FTAdviser.com - Banks at odds with FSA on transparency

[Amethyst]

Re: Transparency as a Regulatory Tool - consultation response documents

This is the background to the consultation

DP08/3: Transparency as a Regulatory Tool


Introductory documents

Newsletter [ PDF ]
Press release:
FSA launches debate on increasing transparency in regulation

Discussion paper

DP08/3: [ PDF ]
Transparency as a Regulatory Tool

Response

Online response form
Response Paper will be available at the end of the consultation process

[natweststaffmember]

Re: FSA Transparency as a Regulatory Tool - responses from banks and consumer groups

THe Association of Independent Financial Advisors Response
http://www.aifa.net/your-industry/DP...atory-tool.pdf
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Quoted Companies Alliance Response(in HTML)
(Microsoft Word - QCA Response to FSA -Transparency as a Regulatory Tool - A\205)
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Investment Management Association's response
http://www.investmentuk.org/news/res...setodp0803.pdf
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Association of Personal Injury Lawyers response

Financial Services Authority Financial Services Authority Financial Services Authority Financial Services Authority