Needs of smaller firms must not be lost in new regulatory structures

28 July, 2010

Phil Gray, Chairman of the FSA’s Smaller Businesses Practitioner Panel said today in response to HM Treasury publication of consultation on a new approach to financial services regulation and plans for regulatory restructuring

“Around 90% of businesses regulated by the FSA are categorised by the FSA as small, and yet the focus in the recent financial crisis has, rightly, been on larger firms. Smaller firms must not become unintentionally caught up in complicated new regulatory processes that reduce their ability to conduct business effectively.

Our recent annual report highlighted progress made with the FSA in recognising the cost and burden of regulation on smaller firms. We do not want this to be lost.

We are pleased that the importance of smaller firm engagement has been recognised in the proposal to make this Panel a statutory Panel (paragraph 4.38). We plan to engage fully in the forthcoming consultation on behalf of smaller firms. Our website will give further details as they are available.”

Notes to Editors

1. The FSA regulates over 17000 small firms – these are categorised by the FSA according to the risks posed to the FSA’s objectives. The risk is a combination of the impact if a problem occurs and the probability of that problem occurring.  Small firms are generally those that are regarded as having a low impact individually if a serious problem occurs at the firm and so do not have a dedicated supervisor.
2. The Smaller Businesses Practitioner Panel was set up by the Financial Services Authority (FSA) to represent the views and interests of smaller regulated firms and to provide advice to the FSA on its policies and strategic development of financial services regulation.  More details are available on the website.
3. Phil Gray has been Chairman of the FSA’s Smaller Businesses Practitioner Panel since 1st June 2010.  He is also Chief Executive of the Beverley Building Society. Full membership of the Smaller Businesses Practitioner Panel is as follows:
   
   Phil Gray (Chairman) Beverley Building Society; 
   Simon Bolam (Deputy Chairman) EH Ranson and Co;  
   Clinton Askew Citywide Financial Partners;
   Ian Dickinson The Brunsdon Group;
   Paul Etheridge The Prestwood Group of Companies; 
   Peter Evans Police Credit Union; 
   Sally Laker Mortgage Intelligence;
   Guy Matthews, Sarasin Investment Funds;
   Fiona McBain  Scottish Friendly Assurance;
   Keith Morris Sabre Insurance Company;
   Andy Smith TD Waterhouse UK;
   Andrew Turberville Smith Weatherbys Bank Ltd.