The powers of the FSA and Financial Ombudsman Service could be curtailed under Conservative plans to...
The powers of the FSA and Financial Ombudsman Service could be curtailed under Conservative plans to cut bureaucracy in the financial services industry.
Tory shadow financial services minister Richard Spring, former managing director at stockbroker Furman Selz, wants to repeal the Financial Services and Market Act and replace it with a new one.
He has launched a two-month consultation period with industry representatives to decide what this should be.
Spring said: "As the financial services sector becomes more important, the costs of compliance and of administering the FSA are rising. We want to find out ways of improving this."
Spring argues it is possible to reduce the burdens of the FSA without abandoning the consumer.
He also wants to keep a single regulator for the industry, claiming the Tories would have introduced such a body had they remained in power after 1997.
The regulator is not his only target and Spring has the FOS in his sights as well.
He said: "Its role has to be examined. There are 800 people working for the Ombudsman and all sorts of questions have to be asked about exactly what they are doing."