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Reducing FSA fees though fines is a joke, says Which?

Which? has slammed the use of Financial Services Authority fines to reduce industry levies as a joke.

The consumer champion welcomed chancellor George Osborne’s plans for FSA fines to go to the Treasury rather than to the regulator.

Peter Vicary-Smith, chief executive of Which?, says the current situation is it has long called for fines to be directed to consumers.

He says: “We’re pleased that the Chancellor is looking again at what happens to the fines imposed on banks when they break the rules.

“We have been calling for these funds to  benefit consumers directly for example through independent debt advice and financial education for young people.

“It’s a joke that currently any proceeds from fines are recycled in reduced industry levies the following year.”

Mortgage brokers are facing a 10% hike to FSA fees this year and Mortgage Strategy is campaigning to Bring Down FSA fees.

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