Watching out for the Y in MPBR
Two days ago the FSA published its Business Plan for 2007/08 (here; press release). Yesterday, the Financial Times published no less than four pieces on the topic of principles-based regulation. They are: News, Comment*, Lombard* and Mudlark (* subscription required).
Interesting to highlight is the notes of caution and shared views expressed in the news article and comment on the dangers of principles’ potential vagueness and the requirement of a competent regulator with industry input to make such approach work. Lombard particularly explores the importance of competent personnel for a regulator to be competent (which is acknowledged in the Business Plan, on page 33 (35 of 55); the SEC recruitment video Lombard refers to, for who’s interested, it’s here).
It’s Mudlark who elaborates on the “more” in “more principles-based regulation” or MPBR, expecting the “Y”, as in “yet”, to follow in years ahead. (Also see this previous post on FSA Enforcement strategy, and the FSA Discussion Paper DP06/05, on industry guidance, which is being referred to in the comment piece.)