FSA to take action on Lehman structured product review
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In an update today, the FSA said it will report back on the outcomes of its review in more detail in October but has confirmed it will be taking action against firms as a result of the findings.
The regulator also announced it has lifted its hold on the Ombudsman's review into individual complaints of Lehman-backed structured products.
In May, the FSA and Ombudsman agreed that the issues relating to Lehmans-backed structured products should be considered under the "Wider Implications" process, in order to allow the FSA to explore all options to achieve the best outcome for consumers.
As part of its review, the FSA has looked at promotional literature, clarity of information, quality of advice, sales systems and controls, involving plan managers, providers and advisers.
The FSA says it has now gained enough information from its review to enable it to move forward and believes it is now appropriate to lift the hold on individual adjudications of complaints immediately.
FSA retail policy director Dan Waters says: “In light of the progress we have made, we believe our regulatory action can now progress alongside the Ombudsman adjudicating on individual complaints without prejudicing either, so individual cases referred to the Ombudsman can now proceed.”
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Readers' comments (2)
Anonymous | 11 Sep 2009 8:51 pm
Why no full review?
Why a piecemeal approach, yet again? The mind boggles, does it not? Not really, just another buck passing exercise by the regulator.
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Fall Guy | 14 Sep 2009 12:19 pm
Here we go again
"As part of its review, the FSA has looked at promotional literature, clarity of information, quality of advice, sales systems and controls, involving plan managers, providers and advisers."
But guess who the fall guys will be?
Thats right the advisers! The Fsa will not take on the providers etc when it is easier to bully the IFA sector. Once again the FSA will convince consumers that the advisers are the bad guys who are out to sell you anything for a fast buck. When will they learn it is PRODUCTS that require regulation ? why is that so difficult for the FSA with all of the well paid graduates employed at canary wharf, why is it they do not have enough sense to see this?
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