View more on these topics

FSA rules out retrospective judgement

The Financial Services Authority has confirmed it will continue to judge firms’ standards of product sales and financial advice by the standards and rules at the time of sale and not retrospectively.

This policy will not be changed by the regulator’s move towards more principles-based regulation.

The framework the FSA operates under dictates that it will not take action against firms after the event for mis-selling, provided they meet its requirements under its high level principles and the rules set out in its handbook.

Stephen Bland, director of small firms at the FSA, says: “The FSA believes that firms should be assessed against the assumptions that were reasonably made under the regulatory context of the time and there should be no retrospective application of later, more exacting standards.

This has always been, and will continue, to be our view on retrospective regulation as we move towards more principles-based regulation.

Firms can also help themselves by keeping an adequate record of any advice given to consumers and the reason for it.

“Principles-based regulation focuses on the outcomes, and less on the route to achieving them. We believe this will allow firms to react swiftly and flexibly in a fast-changing world.”


RBS sees boost as consumers move away from unsecured loans

Royal Bank of Scotland says its first half results for 2006 are positive, with a boost in retail markets from consumers’ move away from unsecured loans to savings and investments.Highlights of the results, to be published on August 4, include good organic growth on income, disciplined expense control and a small improvement in overall credit.It […]

BDS takes on BDM

BDS Mortgage Group has appointed Sarah Barnett as business development manager with responsibility for managing key broker relationships. Blemain newscast Blemain Finance has participated in the c2-financial weekly web newscast.


Brit in custody over fake mortgage scam in Spain

A British man was taken into police custody last week after allegedly scamming fellow Brits with fake mortgages on the Costa del Sol. The mortgage fraud operated over 18 months from Dominion Beach in Estepona and was headed by John Michael Doust. The scam is believed to have netted tens of thousands of euros each […]

Platform prepares to take on rivals

Platform is planning a series of initiatives in anticipation of the plethora of new entrants lined up to burst into the specialist lending market. It has reacted by reviewing its strategy and widening and enhancing its product range. The first initiative launches today with a revised product range including additions to lending criteria and new […]


News and expert analysis straight to your inbox

Sign up