The Consumer Panel welcomed the FSA's announcement today of a new framework for recognising industry guidance under Principles-Based Regulation. This includes a commitment to notify the Consumer Panel of all guidance referred for approval to the FSA, and to seek its views on those considered to have a significant impact on consumers before issuing any confirmation.

The Panel had been concerned that although the FSA's rules have to be subject to public consultation, there is not the same need to do so on industry guidance. We are therefore pleased that the FSA has undertaken to submit guidance to the Consumer Panel for its opinion before confirmation. The FSA has already started to do this, by involving the Panel in the recent industry guidance on the interpretation of MIFID by MIFID Connect.

John Howard, Chairman of the Financial Services Consumer Panel said:

"We have supported the FSA's move to principles based regulation, but were concerned that new guidance would be developed by industry without proper consideration of the consumer implications of any changes. We are pleased that the FSA has recognised our concerns and look forward to helping industry to produce guidance which takes consumers into account."

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