Imagine a world in which a financial services regulator pre-approves products and forbids their sale without advice.
Now imagine a world in which intermediaries are forced to justify their recommendations by explaining why their preferred product is at least as suitable as a lower-cost, but similar, alternative. These options and a dozen more were outlined in an FSA discussion paper on product intervention published at the beginning of the year. The paper offers a glimpse into a regulatory future not spearheaded by the FSA, but by one of its successor organisations: the Consumer Protection and Markets Authority (CPMA). Currently, the FSA does not question the design or cost of products. Instead, ...
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