Regulations 'need to focus on better outcomes for consumers'

The Financial Services Authority (FSA) needs to focus on getting consumer protection right, it has been claimed.

According to Adam Phillips, acting chairman of the Financial Services Consumer Panel, now is the time to challenge whether the FSA's overall regulatory approach works for consumers as well as businesses.

He said that, while the panel agrees with the Turner Review in that regulatory reform is required, it wants more emphasis on consumer rights.

Recently, the Financial Services Consumer Panel submitted a paper containing a number of proposals.

For example, it suggests that the FSA should regulate all aspects of the firms it authorises, including the provision of loans and other forms of credit to consumers.

In addition, the authority must increase its scrutiny of firm's business models to identify risks to consumers, the panel said.

An independent body, the FSA serves to regulate the financial services industry in the UK.
ADNFCR-2353-ID-19226035-ADNFCR

18/06/2009 15:12

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