'FSA must not replicate subjective Fos approach'

Speaking at Prudential’s industry forum in Birmingham, Fay Goddard, deputy director general at Aifa, says the association welcomes the flexibility brought by a move towards principles-based regulation, but is concerned the FSA could replicate the Fos through its regime. She says the Fos is extremely subjective when it decides cases because a firm may have met every requirement but still be judged as not fair and reasonable by the ombudsman. “We don’t want to see this being replicated through the regulatory regime,” says Goddard. Aifa is also concerned a move to principles-based regula...