The Financial Services Authority (FSA) has been cleared of wrongdoing by the Complaints Commissioner after a consumer complained over its handling of alleged mis-selling 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 understand why you feel that, as the funding ultimately came from bank B, the arrangement you entered into should fall under the FSA's jurisdiction," he said.
"[However], it is abundantly clear that Bank B did not market the scheme.
"I know that you are annoyed with the advice you received to take part in the scheme. But from the information presented to me there is nothing to suggest the FSA failed to adequately investigate your complaint."
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