A sole-trader appointed representative asks whether she must set up the same governance committees as a large bank. What principle of good regulation in FSMA 2000 s3B supports a lighter approach for her?
The regulatory principles in FSMA 2000 s3B include that a burden or restriction imposed should be proportionate to the benefits expected, which is why many SYSC requirements apply in a way proportionate to the nature, scale and complexity of the firm. There is no staff-number exemption and no exemption from conduct rules for small firms; profitability is not a regulatory principle.
Reading proportionality as an exemption rather than scaled application.
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