The Financial Services Authority (FSA) has published a discussion paper to open a public debate about how the FSA, and the proposed Consumer Protection and Markets Authority (CPMA), should pursue the objective of consumer protection, specifically, on the issue of product intervention.
The discussion paper outlines how the FSA has already begun to make a significant shift towards a more interventionist approach with tighter supervision of the governance of product development. It also sets out a range of future interventions that could be introduced in areas where the potential for customer harm is greatest. These measures may include intervention such as banning products or prohibiting the sale of certain products to specific groups of customers.
In furtherance of its consumer protection strategy introduced last year, the FSA has introduced a more interventionist approach with the aim of anticipating consumer detriment where possible and stopping it before it occurs. The approach aims to reduce consumer detriment by dealing with problems earlier, scrutinizing the whole of the product lifecycle from start to finish rather than just focusing on the point-of-sale.