New UK watchdog 'will consider banning harmful products'

26 March 2013

Britain's new financial regulator will consider banning products it feels could be harmful to consumers, it has emerged.

The Financial Conduct Authority (FCA) - which is scheduled to take over from the Financial Services Authority next month - published its business plan and risk outlook for the UK yesterday (25 March).

As part of this document, the FCA indicated it is willing to take a zero-tolerance stance on any products offered by banks it deems could be too risky or unsuitable, meaning there should be no repeat of scandals such as the widespread mis-selling of payment protection insurance.

According to the body, it will strive to maintain market "cleanliness", so deals that are perceived to be "inherently flawed" or "in serious danger of being sold to the wrong customers" can be removed.

Martin Wheatley, chief executive designate of the FCA, said the establishment of the new body is an opportunity to "reset conduct standards".

By Tony Aynsley

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