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Daily Insurance Industry News
Thursday 18th of January 2018
January 25, 2011

FSA launches “product intervention” debate

by Gill Montia

Story link: FSA launches “product intervention” debate

A new consumer protection strategy could result in the sale of some financial products being banned, or restricted, the Financial Services Authority (FSA) suggests.

The regulator has today published a discussion paper inviting public debate on the subject of product intervention, and setting out a range of future interventions that could be introduced once the proposed Consumer Protection and Markets Authority (CPMA) is established.

The regulator says it has already introduced a more interventionist approach by dealing with problems earlier and scrutinising the whole of the product lifecycle, rather than focusing on the point-of-sale.

However, FSA chairman, Lord Turner, is inviting a broad discussion as the powers of the CPMA are shaped by the Government, parliament and stakeholders.

He explains: “Our analysis has led us to the conclusion that a significant shift in approach is required but there are important tradeoffs to be struck – between consumer protection and consumer choice, between effective regulation to prevent customer detriment and the costs that that will inevitably impose.”

 

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