ACCOUNTABILITY, TRANSPARENCY AND MEASURING OUR SUCCESS
Two new regulatory principles(19) make transparency a priority in our approach:
• the desirability of publishing information about regulated firms and individuals, or requiring them to do so; and
• the requirement to exercise our functions as transparently as possible.
In the first quarter of next year, the FSA will publish a discussion paper that will review ways to embed transparency in how we do our job. The paper will cover how to make more use of disclosure in the way we regulate. Alongside this, we will look at whether we can make firms provide more useful information and how we can be more open about our internal decision making.
Funding
All our running costs will be paid for by the firms that we regulate, through the fees that we charge. We are not directly funded by the Government or the general public.
We want to clearly show people what the link is between the fees we charge and the work we do as a regulator. We will publish our annual fees rates consultation when we publish the business plan in March 2013, followed by the final 2013/14 fees rates at the end of June 2013.
We will also show how we ensure firms get value for money and how we manage our costs. This will include clearly setting out in our annual report why we have spent the money in the way that we have, and the benefits it has brought.
How we will set our fees
For our first fee year as the FCA (2013/14), we will set our fees by adapting the current methodology, making only the necessary changes to accommodate dual regulation. We will consult on these changes before the end of 2012. This will include our governing principles.
During 2013/14 and before consulting on further changes, we will listen to the views of the industry to explore possible alternatives.
Achieving value for money
Good regulation needs to be properly resourced to be effective and at the same time we are determined to ensure that resources are used efficiently. We will have a comprehensive value-for-money strategy, owned by the FCA Board, with appropriate governance and robust challenge mechanisms.
We will have a comprehensive value-for-money strategy, owned by the FCA Board
We are developing a variety of incentives and mechanisms to demonstrate value for money, including savings targets, delivering with reduced headcount, and further streamlining the way we procure services. The FCA’s business plan for 2013/14 will reflect these and build on improvements made by the FSA, including more thorough mapping of performance to statutory objectives and greater standardisation of management information.
Our staff
The FCA remit asks us to make judgements and intervene early. Consequently, our leaders will need to make decisions and reach judgements faster. These could be unpopular and lead to criticism, so senior staff will have to demonstrate strength and backbone to stick to their actions if they believe it is the right thing to do. We also want our leaders to lead by example and show more curiosity about what is going on around them, to ensure they collaborate better with others both within the FCA and externally. This will enable them to focus on anticipating and acting on the next big risks to consumers and market integrity. We are working on a range of ways to bring about this new kind of culture.
19 The principles are what we must ‘have regard to’when we carry out our
work.They are set out in section 3B of the Financial Services Bill:
http://services.parliament.uk/bills/2010-11/financialservices/documents.html.
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