Caveat emptor remains - FSA

Scott Sinclair
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The FSA has stressed it remains legally bound to take into account the role of the consumer in the event of a questionable financial product sale.

It says guidelines in the Financial Services and Markets Act (FSMA) 2000 means it has to reflect on the principle of ‘caveat emptor' - meaning ‘let the buyer beware' - when dealing with the issue of liability. However, adviser anger on the subject remains after the FSA today announced it can find no case for forcing consumers to accept more responsibility. It had asked for industry comment on the issue amid concerns liability was imbalanced in favour of the consumer. "We have to take into account caveat emptor under FSMA," an FSA spokesperson says. "How much we look at the role of...

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