Government plans to give the FSA's successor powers to intervene in product regulation could lead the public to expect they have been endorsed by the regulator and so are ‘safe', ministers have been warned.
Several respondents to the Treasury's consultation on financial regulation raised the concern if plans to extend the Financial Conduct Authority's (FCA) powers beyond those of the FSA, including to ban products, go ahead. The fears were published today in a government white paper, A new approach to financial regulation: the blueprint for reform. Other respondents suggested consumers may look to jurisdictions outside the UK to purchase riskier products, negatively affecting British competitiveness. To mitigate these risks, some industry respondents said the new power should be used ...
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