FSA aims to reward good practice
Firms seen by the UK's Financial Services Authority as being "well-controlled and managed" in terms of their regulatory processes could see lower capital requirements and supervision as a result of adopting principles-based regulation. According to a report published by the FSA, it will "give greater recognition to firms' own management and controls, and this will be reflected in areas such as capital requirements and supervisory intensity" if firms are seen to be engaging positively with FSA
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