FSA could start regulating products

The FSA is contemplating a u-turn in how it supervises the retail market as retail MD Jon Pain says it will have an ‘open mind' on regulating products in the future.

In a speech to the 17th Gleneagles Savings and Pensions Industry Leaders' Summit at the weekend, Pain says the events of the last two years have made the regulator question its long held assumptions, particularly as financial innovation has in some cases delivered little benefit. He says problems with mortgage endowments, bank charges, pension products and payment protection insurance mean alternative approaches should be explored to ensure consumer needs are met. "Consequently we will approach product regulation with an open mind in future. "We would see the term ‘Product regulati...