FSA wants firms to prove product stress-testing

Quizzing firms about the way they test product behaviour in different market conditions could be part of a more "pre-emptive" approach to dealing with industry issues, Sheila Nicoll, director of the FSA conduct policy division, said last night. Stress-testing means being clear about what the product does, who it is for and certain key characteristics such as the nature and scale of risks presented. In a speech at the Scottish Financial Enterprise (SFE) last night, Nicholl said: "We may ask firms how they are stress-testing products to understand how they will behave in different marke...