New plans by the Financial Services Authority (FSA) to cut red tape would mean thousands of City professionals would no longer be subjected to criminal records checks.
The criminal backgrounds of those City workers who deal in the wholesale markets, working exclusively with contemporaries and not the public, would no longer be checked.
These employees would not have to be vetted through the "approved persons" register of the FSA. This register requires individuals to have express approval to carry out certain tasks.
Financial services providers would be welcoming these new regulations, as compliance costs are high. However, concerns about fraudsters being under the radar have been raised.
The Times reported that the financial services regulator acknowledged that this lack of information on employees could lead to possible loss to the quality of assessment that could be made.
But the FSA head said the financial services regulator was determined to be more rigorous about the "costs and burdens that regulation imposes on firms".
The financial services watchdog said it could still ban unsuitable candidates from working in the City.
Financial services watchdog to cut red tape
Financial Services
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Financial services watchdog to cut red tape
Fri, 15 Jul 2005
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