HECTOR Sants, chief executive of the Financial Services Authority, promised a new era of ‘Intensive Supervision’
Sants used the speech to acknowledge the criticism of the FSA’s ‘light touch’ approach since the start of the financial crisis and urged executives to “…set a strong ethical framework and to foster the right culture.”
He cited the increase in financial penalties imposed by the regulator and their recent handling of controversy over the way that PPI is sold, amongst other things, as examples of the FSA’s new approach.
“Society must not lose the benefits of the tough, hard learning experience the FSA has been through,” he said, acknowledging that in the past the FSA’s focus “has not delivered the outcomes that consumers deserve.”
‘Credit Card Comparison Online’ Editor Julia Kukiewicz commented: “This speech underlines the FSA’s commitment to protecting consumers.
By acknowledging that reform in the financial sector is worthless unless it results in a better deals for the end users of financial products, the FSA may go some way to restoring battered consumer confidence.
However, further reform is needed, particularly in the credit card sector where overly-complex and poorly marketed products are making it increasingly difficult for consumers to make the right choices.
The charge from some in the credit card industry – in Price Waterhouse Cooper’s ‘Precious Plastic’ report, for example – that increased regulation will mean decreased choice is fallacious: a proactive approach from the FSA can lead to a better deal for all.”
