CII Suggest New Financial Retail Regulator

by Stewart Douglas

Story link: CII Suggest New Financial Retail Regulator

The CCI Group has today called for a unified professional board to govern malpractice and principles within the retail financial sectors, with the power to take immediate actions against offenders to underline the quality of financial service provisions to consumers.

In its fifth response paper to the FSA consultancy document, the CII today suggested that a singular board to look after practices throughout the industry would be welcomed, as a means of introducing more rigorous checks on the way in which services are sold.

The move comes just days off the final publication deadline for the report to submission, which will put forward the outlined concepts for serious consideration by regulating authority FSA, meaning it could come in to force sooner than had been anticipated.

Amongst the suggestions for the new body are a singular standards document to which all retailers must adhere, looking to cover basics in laying the ground work for improved technical abilities across the industry. Additionally, the new board would have the powers to change the regulations and maintain a close overview of the way in which services where sold.

The proposed body would also be able to handle complaints from customers, investigating allegations of malpractice and fraud independently before levying the appropriately weighted sanctions, which will be put forward as a vital element of any newly created body.

Sandy Scott of the CII was today optimistic about the new body, suggesting that the overall value would far outstrip the initial costs and logistical problems. “There will be a cost to establishing a professional framework of the kind we are advocating. But I firmly believe that this will be insignificant compared with the far greater industry and public cost of mis-selling or other public failings which have tarnished the reputation of retail financial services in recent years.