Michael Blair, QC, the former legal chief of the FSA has censured the City regulator for its ‘selective' description of the verdict during the Legal & General case last week.
Blair, serving on the FSA board until 2000, said that the FSA should have produced a “true and fair” description of the verdict, The Times writes.
Blair said that instead, the FSA’s formal press release on the case concentrated on its success in getting one element of its case upheld and played down the fact that the FSA’s key finding of “systemic mis-selling” had been overturned.
He added that ”elements of the statement were selective, I’m surprised they didn’t adhere to higher standards.”
Blair continued that impressions in the statement indicated that the FSA was 75% vindicated, while a more realistic figure was 40%, with L&G having the edge.
JOHN Tiner, the battle-scarred chief executive of the FSA, will launch a fightback this week by promising to cut the cost of regulation for small businesses, the Scotsman writes.
Tiner, back peddling from heavy criticisms of the FSA’s procedures following the Legal & General mis-selling appeal wants to re-establish his credentials by tackling one of the biggest issues facing firms.
Continued pressure from independent financial advisers across the UK, who claim that costs of dealing with the FSA’s litany of regulation is driving them out of business, has led Tiner to pledge a wholescale review of charging.
A source close to the regulator said: "We’re starting with a clean sheet of paper.
"The review will look at all the existing rules and see which of those are really necessary for small firms. There’s a chance that we’ll eventually see some exemptions, but we’ll have to wait to see what comes out of the consultation."
BUSINESSES UNDER INVESTIGATION by the tax authorities could face 'seizing and entering' procedures without a court order after the merger of the Inland Revenue and Customs & Excise, writes the Telegraph.
The Revenue currently has to obtain a warrant from a judge before entering premises, while Customs & Excise does not, exercising greater powers.
Accountants are concerned that the Revenue's powers could become "more draconian" from April 1, when the merger is due to take effect.IFAonline
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