FSA proposes emergency product intervention rules

The Financial Services Authority (FSA) is proposing emergency measures to intervene in the sale products where it judges mis-selling, flaws, or other problems to consumers.

The interventions would be made by the incoming Financial Conduct Authority (FCA) without consultation as "temporary rules". The Financial Services Bill specifically includes this power as part of the FCA's toolkit. The FSA is consulting on its successor body's behalf so that the FCA's approach is clear and understood by April 2013 when the new regulator comes into being. Rules made before consultation would last for no longer than twelve months and could not be renewed. During this time, the FCA will either consult on a permanent remedy or aim to resolve the problem another way....