His report was well received and the Government endorsed it sufficiently for regulators like the FSA to be responding positively to the recommendations.
Hampton discovered that “there are overlaps in regulators’ responsibilities and enforcement activities. There are too many forms, and too many duplicated information requests.”
Hampton states that the burden of regulation is felt most by smaller businesses.
A business with two employees spends more than six hours per month per employee on Government regulation and paperwork, while a business with more than 50 employees spends only two hours per employee. National regulators distribute 2.6m forms each year and carry out 600,000 inspections.
The FSA and OFT are liaising about duplication and overlapping, and an announcement is due in September. It is hoped that the FSA will look again at RMAR, particularly for secondary intermediaries (which includes motor dealerships) and reduce the administrative and data gathering requirements.
The FSA is rising to the challenge by promoting ‘Principle based regulation’, which means less rules and more adherence to the spirit of the FSA’s Principles.
We now await rule reduction and it is asserted that notification requirements will be reduced. Let’s count the reduction in the 8,000 page FSA rule book in a year’s time to judge its success.