FSA gets powers to enforce without waiting for appeal
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The FSA has been granted new powers by the Government which allow it to publish its enforcement actions before the person involved has had an opportunity to appeal.
A commencement order, set out in Parliament by the Treasury this week, gives the FSA the power to publish decision notices as well as final notices issued by the regulator’s enforcement division.
This means the FSA no longer has to wait until the final notice stage to make enforcement actions public, before the involved individual or firm has had the opportunity to refer the matter to a tribunal. The order has also enacted powers that form part of the Financial Services & Markets Act which allow the FSA to set up consumer redress schemes to deal with specific market failures. Advice reviewed by these redress schemes would be subject to an effective 15-year long stop.
FSA managing director of risk Sally Dewar says: “The FSA will seek to use this power where necessary to ensure consumers are fairly treated.”
Financial Choices partner Richard O’Fee says: “I think there is already too much the FSA can do without the right of appeal. It seems to want to take action without any legal impediment.”
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