Turner asks if CPMA remit could include competition
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FSA chairman Adair Turner has questioned whether the new Consumer Protection and Markets Authority should consider competition issues as part of its remit.
Speaking at the British Bank-ers’ Association’s Annual International Banking Conference in London on Tuesday, Turner said that under the current framework, the FSA must “have regard to” facilitating competition among firms.
But he said: “We are not enc-ouraged by our regulatory framework to consider whether consumer protection interests would be best served not by more regulation or more consumer education but by more intense competition.
“But now that we are establishing a dedicated consumer protection authority, it is an opportunity to think through which tools are most effective.”
Turner also said that the FSA’s recent shift to a more intrusive regulatory style risks restricting consumer choice.
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Readers' comments (1)
Tim Fox | 16 Jul 2010 2:01 pm
Ah, encouraging competition...Anyone else remember the last time a regulatory body "encouraged competition" in the financial services industry?
There was virtually no scope for commission bias between providers when there was a maximum commission agreement. Then Gordon Borrie and Francis Maude decided to abolish it in the interest of competion - apparently providers would fight it out with one another to pay lower commission rates. The going rate of 100% of LAUTRO became 140% of LAUTRO literally overnight, with 180% perfectly achievable for some advisory firms.
In recognition of his achievements Gordon Borrie got a knighthood. The Industry got the RDR......
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