Product regulation will lead to a drop in innovation and "inevitable" extra costs for financial advisers, Chris Cummings says.
The AIFA director general says he supports an FSA-led pre-approval process for financial products, but warns such a move will have significant downsides. During a speech at the 17th Gleneagles Summit on 19 September, the FSA announced it "will approach product regulation with an open mind in the future", adding the term ‘product regulation' may involve pre-approving or banning products. FSA managing director of retail markets Jon Pain said well-documented problems with mortgage endowments, pension products and payment protection insurance (PPI) has forced it to "explore alternative ap...
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