The powers of the FSA should be limited and regulation relaxed for a number of complex financial products and mortgages, according to a Conservative working group report.
The Competitive Challenge working group, headed by John Redwood, has made a number of recommendations to remove regulation of mortgages and products designed for sophisticated investors. It also proposes preventing the FSA from adding to EU regulations and hiring an independent expert to ensure the FSA is helping firms comply with regulatory changes. The report states that, while the Government is right to ensure that customers are protected when placing money in unit trusts or where institutions add consumer money to their own balance sheets, it does not think more sophisticated investors...
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