The FSA’s Chief Executive Hector Sants has made a speech at the British Banking Association Conference regarding the new opportunities and plans with the Government's intended regulatory authority for consumer protection and markets, the Financial Conduct Authority (FCA).
He explained that the FSA’s historic approach had been inadequate with regard to protecting consumers, with reliance on consumers to make the right judgements based on effective disclosure.
He said the new FCA can build on this experience and upon the FSA’s new proactive consumer protection strategy launched in March 2010. With more intensive supervision of firms to ensure they are treating customers fairly and a more appropriate level of redress and compensation when a failure has occurred.
In order for the FCA to work it will require stronger powers of intervention than the FSA has had to ban specific products. He believes a more proactive, accountable and transparent approach to consumer regulation is required.
In order to prepare for the transition, the FSA will be moving to a new management structure in April. The FSA will remain as a unitary entity until the end 2012 or early 2013.
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