The Financial Conduct Authority will need new “powers and teeth” to protect consumers, according to FSA chairman Adair Turner.
Speaking at the Mansion House last night in London, the FSA chairman says powers will be needed to act early to intervene and prevent customer detriment.
He says: “In financial services the potential for the customer to be ripped off is simply far greater than in other sectors of the economy – and the consequences potentially more significant.
“The challenge for the Financial Conduct Authority will be how to counter that danger. Parliament will need to equip the FCA with new powers that will be needed to give the new approach effective teeth.”
However, Turner says all involved will need a “realistic understanding” that no regulatoy system “can, or should, try to create a nil-risk market environment”.
He adds: “So even in the best designed system problems will still emerge.”