Memorandum submitted by the Financial
Services Practitioner Panel
The Practitioner Panel was set up, as the Practitioner
Forum, by the Financial Services Authority in 1998 to create a
high-level body to which it could turn for opinions on matters
having an impact on regulated firms. Subsequently, the Financial
Services and Markets Act 2000 ("the Act") established
the Panel as a statutory body, alongside the Consumer Panel. This
was in recognition of the important role of both Panels in the
accountability and regulatory framework established under the
Act. Both the Practitioner and Consumer Panels became statutory
on 18 June 2001.
The remit of the Panel is to represent the interests
of practitioners, and to provide input to the FSA from the industry
in order to help it in meeting the statutory objectives and principles
of good regulation. The Panel's four principal functions are:
to monitor the FSA's effectiveness
as seen by the industry;
to communicate to the FSA issues
of general concern to regulated businesses about regulation in
to respond when requested to by the
FSA with a practitioner view of key regulatory issues; and
to contribute a broad financial industry
view on the formulation of FSA policy and on the response the
FSA proposes to make to representations it has received during
any formal consultation process.
Section 11 of the FSMA brought an important
part of the formal accountability of the FSA to the Practitioner
Panel into effect. Coming into effect on 18 June 2001, this means
that if the FSA ever rejected formal advice offered by the Panel,
it should have to explain its reasons in writing. The same also
applies to the FSA's relationship with the Consumer Panel. Neither
Panel expects that formal representations under the Act will be
made often, and none have been made to date since the provision
was brought into effect.
The Panel commissioned a survey of regulated
firms for their views on regulation, the results of which were
published in early 2000. A further similar survey is planned for
the early summer of 2002, with the results to be published in
Donald Brydon became Chairman on 1 October 2001,
having been vice-chairman before that. He has been a member of
the Panel since its inception. He succeeded David Challen, who
retired as Chairman at the end of September 2001, having led the
Panel's work since it was first set up in 1998.
Membership of the Panel is constructed to represent
the various sectors within which regulated financial businesses
operate, based mainly on nominations made by trade associations.
It has been agreed that for the purposes of Nolan procedures the
Panel can be treated as a non-departmental public body, meaning
discretion can be used not to apply full Nolan procedures. Members
are drawn from the most senior levels of the industry. The Act
only specifies two sectors which must be represented, these being
recognised clearing houses and recognised stock exchanges. Members
are formally appointed by the FSA, and the Chairman must have
the formal approval of the Treasury.
The Panel aims to rotate its membership to ensure
a balance between consistency and new input.
The current Panel membership is:
|Donald Brydon (Chairman)
||Chairman & Chief Executive, AXA Investment Managers.
|Barry Bateman||President, Fidelity Investment Management Ltd.
|Jonathan Bloomer||Group Chief Executive, Prudential plc.
|Matthew Bullock||Group Chief Executive, Norwich & Peterborough Building Society.
|David Challen||Co-Chairman, Schroder Salomon Smith Barney.
|Clara Furse||Chief Executive, London Stock Exchange.
|David Hardy||Chief Executive, London Clearing House.
|Ian Harley||Chief Executive, Abbey National.
|Roy Leighton||UK Chairman, Credit Lyonnais.
|Brendan Nelson||Chairman Financial Sector, KPMG.
|Michael Quicke||Chief Executive, Leopold Joseph & Sons (Joint Chairman of FSA Small Business Practitioner Panel).
|Roger Sanders||Principal Roger Sanders Associates (Joint Chairman of FSA Small Business Practitioner Panel).
|Hector Sants||Vice-Chairman, Credit Suisse First Boston.
|Paul Spencer||Chief Executive (UK), Royal & Sun Alliance Insurance Group.
30 January 2002