FSA escapes censure over equity release investigation

The Financial Services Authority (FSA) has been cleared of wrongdoing by the Complaints Commissioner after a consumer complained over its handling of alleged misspelling of an equity release-style scheme.

In 2005, the complainant was introduced to the scheme by a Spanish-based IFA, and alleged it had a similar structure to a product banned by the UK regulator in 1991. The scheme was run - though not marketed or recommended - by the Channel Islands branch of a UK bank (bank B, and the complainant argued the regulator had failed in its duty by allowing such a scheme to operate. But commissioner Anthony Holland said as the scheme was run by the Channel Islands arm of the bank - and the IFA was based in Span - the FSA was not responsible for its regulation. "I can to some limited extend...