FSA escapes censure over equity release investigation

clock

The Financial Services Authority (FSA) has been cleared of wrongdoing by the Complaints Commissioner after a consumer complained over its handling of alleged mis-selling of an equity release-style scheme.

In 2005, the complainant was introduced to the scheme by a Spanish-based IFA, and alleged it had a similar structure to a product banned by the UK regulator in 1991. The scheme was run - though not marketed or recommended - by the Channel Islands branch of a UK bank (bank B, and the complainant argued the regulator had failed in its duty by allowing such a scheme to operate. But commissioner Anthony Holland said as the scheme was run by the Channel Islands arm of the bank - and the IFA was based in Span - the FSA was not responsible for its regulation. "I can to some limited extend...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Court sets trial date in illegal financial promotions case

Court sets trial date in illegal financial promotions case

Lucy Beck pleads not guilty

Sophia Panayi
clock 31 July 2026 • 1 min read
FCA flags weak customer outcome focus in firms' monitoring frameworks

FCA flags weak customer outcome focus in firms' monitoring frameworks

Consumer Duty review found inconsistent governance and oversight

Sophia Panayi
clock 27 July 2026 • 2 min read
Open finance could pose 'existential threat' to advice market

Open finance could pose 'existential threat' to advice market

Consumer Duty Alliance tech forum attendees hear

Sophia Panayi
clock 23 July 2026 • 3 min read