The Consumers' Association says that FSA proposals to enact lighter touch regulation for face-to-face and telephone sales of simplified investment products will not prevent mis-sellling.
Responding to an FSA discussion paper, Delroy Corinaldi, public affairs officer for the CA, says: “Each option put forward by the FSA must be judged against whether consumers will be faced with another mis-selling scandal in the future. There is scope for mis-selling Sandler products just like any other.”
He adds: “The FSA must grasp the opportunity to put in place a suitable and appropriate sales regime that addresses the imbalance of knowledge between consumers and industry and fufills its statutory duty to protect consumers.
“We are urging the FSA to ensure that suitable regulatory protection exists and that the financial services industry, irrespective of what product it is selling, will be held accountable should it fail consumers again.”