After some delay, the FSA has published a DP which explores the creation of a framework for determining what further information the regulator might publish about firms and industry sectors in order to aid transparency. (See: Discussion paper) This DP reflects the FSA’s strategic priorities for 2008 and 2009 (See: UK: New Business Plan for FSA)

The FSA has emphasised the importance of transparency and suggested that the release of more information on individual firms, as well as broader information on the industry, could result in more satisfactory conclusions for businesses, markets and consumers.

In the DP, the FSA sets out a code of practice which would provide a transparent mechanism for guiding FSA decisions about what additional information it might disclose. The FSA has applied the draft code of practice to a number of examples, and has investigated for each one whether regulatory transparency will or will not help to achieve FSA objectives.

Importantly, the FSA has recognised the concern on the part of firms that information provided to the FSA on an assumption that it is confidential, may as a result of the proposals, end up in the public domain. The FSA has stated that, where it is considering the routine publication of confidential information, it will give firms’  notice so that they are alerted to the possibility of disclosure in advance of submitting the relevant information.

Furthermore, the FSA has accepted that stakeholders may have strong views on this topic which is why the FSA suggests that the DP will instigate a full and open debate that involves all those who may be impacted by the proposals.

The FSA has said that in practice whether it chooses to disclose information will depend on a case by case analysis.

The FSA has invited responses to the DP. The deadline is 29 August 2008. Comments can be submitted using the electronic response form below.

Electronic Response Form

See previous blog: UK: FSA has Postponed Discussion Paper on Regulatory Transparency