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Terms of Reference

  1. The Financial Services Practitioner Panel (‘the Panel’) is established by the Financial Services Authority (the FSA) under the Financial Services and Markets Act to represent the interests of practitioners. The Panel is independent of the FSA.
  2. The FSA Board appoints Panel members, with HM Treasury’s approval in the case of the Chairman. Members are drawn from regulated institutions and market users at a very senior level. Membership will rotate to ensure a balance between consistency and new input.
  3. The FSA provides secretariat support to the Panel.
  4. The Panel does not currently request an annual budget from the FSA, although it has the facility to do so, but requests approval from the FSA Board for funding for specific projects such as research.

Scope

  1. The main remit of the Panel is to provide input to the FSA from the industry in order to help it meet its statutory objectives and comply with the seven principles of good regulation and to represent the interests of practitioners. It does not carry out responsibilities on behalf of the FSA, and does not seek to duplicate the work of trade associations.

Purpose

  1. The Panel will:
    1. Review the impact of the FSA’s policies at the pre-consultation, formal consultation and publication stages, insofar as they affect regulated firms, individuals and markets.
    2. Review and report to the FSA on the effectiveness of the FSA in meeting its objectives and ensure that the FSA, in setting out its priorities, takes into account the various considerations set out in the legislation, namely:

      The need to use its resources in the most efficient and economic way

      The responsibilities of those who manage the affairs of authorised persons

      The principle that a burden or restriction which is imposed on a person, or on the carrying on of an activity, should be proportionate to the benefits, considered in general terms, which are expected to result from the imposition of that burden or restriction

      The desirability of facilitating innovation in connection with regulated activities

      The international character of financial services and markets and the need to maintain the competitive position of the United Kingdom

      The need to minimise the adverse effects on competition that may arise from anything done in the discharge of those functions

      The desirability of facilitating competition between those who are subject to any form of regulation by the Authority

    3. Be available to be consulted by the FSA on specific high-level issues.
    4. Be active in bringing to the attention of the FSA issues which practitioners feel are likely to be of major significance or controversy.
    5. Commission such research as it wishes in order to help it in fulfilling these terms of reference.
    6. Have access to all information which it reasonably requires to conduct its work, except for confidential information about specific regulated firms, individuals or markets.
    7. Have access to the FSA Chairman and Board and will meet them formally at least once a year.

Accountability

  1. The Panel shall publish an annual report on its work.
  2. In addition, members of the Panel will, when appropriate opportunities arise, report informally on its work to practitioners and trade bodies.
  3. As part of research conducted on behalf of the Panel, industry views will be sought from time to time on the Panel’s effectiveness.